Germany's Economic Woes Amplified by Global Challenges, Warns Goldman Sachs

Germany is facing a series of global challenges that are contributing to its economic contraction, including difficulties in the manufacturing sector, a disappointing boost from China's reopening, and higher energy costs, according to Goldman Sachs. The Bundesbank also projected that the German economy is likely to shrink this quarter due to slow private consumption and industry struggles. While there are some positive aspects, such as opportunities in Germany's small and mid-sized companies, Goldman Sachs predicts "fat and flat" returns for Germany's DAX index in line with the rest of Europe, with the risk of geopolitical tensions or trade restrictions hindering the German recovery.