Facebook LinkedIn

In this CIO Special, we examine the faltering German economy and the debate over the appropriate policy response - and explain why there are reasons to believe that the country can overcome its structural challenges. 

To a certain extent, Germany's current weakness seems surprising given that the country's economy weathered the fallout from the Covid pandemic crisis comparatively well in 2020. But the external shock of the Russian war against Ukraine meant that the German government had to put a stronger focus on its own security and military spending, limiting the amount of finance available for numerous other necessary structural reforms. We explain: 

  • Why a weakening global economy is hitting the German economy particularly hard.
  • The outlook for the DAX, given current valuations and EPS estimates.
  • Structural economic problems and the future competitiveness of German companies.

'

The CIO Special below is available to download. Please refer to the Important Information at the end of the memo for disclosures and risk warnings.

PDF

Language:

In Europe, Middle East and Africa as well as in Asia Pacific this material is considered marketing material, but this is not the case in the U.S.

The value of an investment can fall as well as rise and you might not get back the amount originally invested at any point in time. Your capital may be at risk.

No assurance can be given that any forecast or target can be achieved. Forecasts are based on assumptions, estimates, opinions and hypothetical models which may prove to be incorrect. Past performance is not indicative of future returns. Performance refers to a nominal value based on price gains/losses and does not take into account inflation. Inflation will have a negative impact on the purchasing power of this nominal monetary value. Depending on the current level of inflation, this may lead to a real loss in value, even if the nominal performance of the investment is positive.

This web page is not an offer to buy a security or enter into any transaction. The products, services, information and/or materials contained within these web pages may not be available for residents of certain jurisdictions. Please consider the sales restrictions relating to the products or services in question for further information. Deutsche Bank does not give tax or legal advice; prospective investors should seek advice from their own tax advisers and/or lawyers before entering into any investment.

Change of name: As part of Deutsche Bank’s Private Bank, the former International Private Bank also adopted this title on July 20, 2023.