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.



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