German Central Bank President Joachim Nagel revealed that Germany is going through a period of economic weakness, but interest rates must be reduced gradually to ensure that inflationary pressures are fully controlled.
The Eurozone’s largest economy has been the least developed in the bloc in recent years and the outlook is bleak, with weak export demand and its huge industry in recession, with consumers very cautious and turning to saving rather than spending.
Nagel explained that Germany is stuck in a period of economic weakness that has now lasted two and a half years and a recession is likely to occur in the last quarter of this year, which means negative growth and that Germany will lag behind the rest of the European Union countries.
