Explainer: Why Irish pockets should be happy about Germany’s ailing economy

Germany was the worst performing major economy last year and continued negative news from the country may help bring interest rates lower

German economic data is continually poor and that is good news for businesses and consumers who are awaiting a drop in interest rates. Picture: Getty

Bad news for Germany could prove positive for Irish consumers and businesses as it puts pressure on the European Central Bank (ECB) to cut interest rates sooner rather than later.

Bundesbank, Germany’s central bank, on Monday warned its economy was in a difficult state that would continue into the first three months of the year.

The country’s economy shrank by 0.3 per cent in the fourth quarter last year and 2023 as a whole, making ...