Germany’s Distress Levels to Rise as Pain Subsides in Europe

  • Economy exposed to weakness in industrials, real estate
  • Europe overall is expected to see easing pressures: Weil
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Germany is becoming an outlier for corporate distress in Europe as its export-driven economy battles against faltering global demand and persistent price pressures.

The continent’s biggest economy is set to be ranked as its most distressed market for a second year running, according to forecasts from Weil, Gotshal & Manges LLP. In the law firm’s pessimistic scenario — which includes further supply chain disruptions and protectionist trade policies — levels of distress in Germany could exceed the heights reached during the pandemic.