Recession fears recede in Germany but global economy still fragile
Europe’s largest economy narrowly avoided a recession in the third quarter, expanding by 0.1% over the previous three-month period.
Still, the outlook for Germany remains poor.
Here’s what Andrew Kenningham, chief Europe economist at Capital Economics, gleaned from the data:
“The trivial increase in GDP in Q3 means that Germany has narrowly averted a technical recession. But second-quarter GDP fell more than previously thought, and we think the economy will probably contract slightly next year — so a recession may have been postponed rather than avoided altogether,” he said.