German economy slips back into negative growth

Remigio Civitarese
Agosto 14, 2019

Its export-reliant economy avoided a technical recession - two consecutive quarters of falling GDP - by a whisker past year but could fail to escape for a second time.

Gross domestic product was 0.1% smaller in April-June than the previous three months, federal statistics authority Destatis said.

Recession fears are mounting in Europe's biggest economy after it was revealed this morning that German GDP contracted in the second quarter, falling 0.1pc.

Financial markets experts are gloomier about its future than at any point since 2011, according to a survey by the Mannheim-based Zew research institute.

While the overall figures were negative, household and government expenditure and investment outside the construction sector, all increased.

Massive export-oriented industries like carmaking, machine tools and chemicals have suffered in Germany as US President Donald Trump has broadened a trade confrontation with China and threatened to open a new front against the European Union. In fact, the economy grew in 35 out of the last 40 quarters.

"The door at least to a technical wide open", Mr Borger added.

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