Likelihood of German Recession ‘Clearly’ Increasing: Ifo’s Fuest. European economies are facing a major new shock from slowing deliveries of Russian natural gas, which threaten to push inflation even higher than the current record levels and drive the continent’s powerhouse Germany into “imminent” recession, Deutsche Bank said. “What is unfolding in Europe in recent days is a fresh big negative supply shock,” Deutsche Bank analysts wrote, citing a 60% fall in gas flows via the Nord Stream pipeline earlier this month. “If the gas shutoff is not resolved in coming weeks we worry this will lead to a broadening out of energy disruption with material upfront effects on economic growth, and of course much higher inflation.” The latest squeeze on energy supplies as a result of Russia’s war in Ukraine has raised […]