Daily Memo: The Long Road to Normalization

The German economy's second quarter was better than previously thought but still the worst on record.

Germany’s path to economic recovery. Germany’s official Destatis statistics agency published new economic data on the second quarter, including a slightly improved picture of economic output relative to the first three months of the year. According to the new figures, second-quarter gross domestic product fell by 9.7 percent, not 10.1 percent. The Munich-based Ifo Institute noted that sentiment among German business leaders continues to improve and concluded that the German economy is on the path to recovery. The path is long and treacherous, however. The second-quarter decline in GDP was the worst on record for Germany, going back 50 years. And digging into the numbers, household spending fell 10.9 percent quarter over quarter, investment dropped 19.6 percent, and exports plummeted 20.3 percent. Government spending remains one of the few factors lifting the German economy. Pompeo in Sudan. U.S. Secretary of State Mike Pompeo arrived in Sudan on Tuesday to lobby Khartoum to normalize relations with Israel, following the breakthrough normalization agreement two weeks ago between Israel and the United Arab Emirates. But the Sudanese government had other matters on its mind. Sudanese Prime Minister Abdalla Hamdok said the two sides discussed bilateral relations, America’s support for Sudan’s civilian-led transitional government […]

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