Shrinking German economy 'on edge of recession' as exports falter

Shrinking German economy 'on edge of recession' as exports falter

14 Aug 2019 05:35 PM
 

Slumping exports sent Germany’s economy into reverse in the second quarter, with prospects of an early recovery slim as its manufacturers struggle at the sharp end of a global slowdown amplified by tariff conflicts and fallout from Brexit.

Data showed on Wednesday that the overall output fell 0.1% quarter-on-quarter, and with pressure growing for the government to provide stimulus through fiscal reforms, the economy minister said action was needed to prevent a second consecutive quarter of contraction that would tip the country into recession.

The global slowdown, reinforced by Chinese industrial output expanding at its lowest rates in 17 years in July, has broadly impacted the euro zone, where corresponding data showed second quarter growth halved to 0.2%.

But Germany’s traditionally export-reliant economy - Europe’s largest - has been particularly vulnerable, amid signs that the boost it has received from a sustained period of surging domestic demand is waning.

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