You are here: Home » Reuters » News
Business Standard

German economy escapes recession but remains stalled

Reuters  |  BERLIN 

(Reuters) - The German remained stalled in the final quarter of last year, escaping only by the narrowest of margins after contracting in the July-September period for the first time since 2015.

(GDP) in Europe's biggest was unchanged on the quarter, the said on Thursday, undershooting expectations in a poll for 0.1 percent growth.

German companies are grappling with a cooling global and trade disputes triggered by U.S. Donald Trump's 'America First' policies. The risk that Britain leaves the without a deal in March only added to the uncertainty.

"got away with a black eye," said of the fourth quarter numbers.

"But the first quarter is not looking like it is going to be easy either, as political uncertainties are weighing heavily on corporate confidence," he added.

With growth unchanged in the fourth quarter, the economy escaped -- defined as two or more consecutive quarters of negative growth -- after it contracted by 0.2 percent in the third quarter.

Germany's economy grew at its weakest rate in five years in 2018. Growth is forecast to shrink further to 1 percent this year and the country is facing a budget shortfall of around 25 billion euros by 2023.

(Reporting by and Rene Wagner; editing by and Balazs Koranyi)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, February 14 2019. 13:15 IST
RECOMMENDED FOR YOU