German Government Expects Slide Into Recession In Q3 - Reports

MOSCOW (UrduPoint News / Sputnik - 24th August, 2019) Europe's powerhouse Germany is projected to slide into recession in the third quarter of this year, according to a government document seen by Der Spiegel magazine.

The German economy shrank 0.1 percent between April and June and is expected to contract again between July and September. A decline over at least two quarters in a row means recession.

"The gross domestic product appears to be about to shrink slightly again in the third quarter meaning there will be technical recession," the paper written by the chancellery reads.

The government said it was not planning any short-term measures to stabilize the economy, given that it was still forecast to expand year-on-year.

It grew 0.4 percent in the first quarter.

"There is expected to be no severe economic crisis as long as trade disputes do not escalate and a no-deal Brexit is avoided," the document concludes.

Germany is Europe's largest economy, accounting for some 20 percent of the EU gross domestic product, and is the world's fourth largest after the United States, China and Japan. But a drop in exports has caused its output to contract this year.