German Economy May Look 'Quite Bad' in 2H: Ifo's Fuest

The video discusses the growing recession risks in Germany due to inflation and limited energy supplies from Russia. Companies face challenges with rising energy costs and supply bottlenecks, leading to adjustments like substituting gas with oil. The German government's fiscal response is limited due to the supply-side nature of the crisis. High energy prices and ECB rate hikes further strain the economy, particularly affecting manufacturing and construction sectors.

What signs are there that inflationary pressures may start to ease in the German economy?

In what ways are high energy prices affecting the construction industry in Germany?