Angst For German Economy As Car Woes Slam On Brakes

Germany's years-long run of steady growth came to a screeching halt in the third quarter, official data showed Wednesday, with an expected bottleneck in the vital car industry matched by broader structural concerns.

Berlin, (UrduPoint / Pakistan Point News - 14th Nov, 2018 ) :Germany's years-long run of steady growth came to a screeching halt in the third quarter, official data showed Wednesday, with an expected bottleneck in the vital car industry matched by broader structural concerns.

Federal statistics authority Destatis reported a 0.2-percent slump in gross domestic product (GDP) between July and September -- the first fall in the measure since early 2015 and worse than forecast by analysts after months of troubling economic indicators.

"The reputation of the invincible strong man (or woman) of Europe has received some scratches," commented ING Diba bank economist Carsten Brzeski.

A single fall in GDP does not point to a recession, which only becomes official if there are two successive quarters of shrinkage.

But the figure represents a marked slowdown from the fast-paced growth of 0.4 percent in the first quarter of the year and 0.5 percent in the second.

Economists still predict Germany will book its 10th consecutive year of expansion in 2019, although the pace this year and next will likely be slower than the 2.2 percent recorded in 2017.