Wed 6 Mar 2019 / Europe
Germany just avoids technical recession
Germany narrowly escaped a technical recession at the end of 2018. Growth came in at zero, from minus 0.2% quarter-on-quarter in September. This performance was the result of too many one-offs, surfacing structural weaknesses and external uncertainties. However, it is not necessarily the end of a long positive cycle. Economic fundamentals remain solid and the chances of a gradual rebound are still much higher than those of another disappointment. The possibility of disquiet in the coalition government, however, raises fresh risks in 2019.