German Economy Ministry: Long-term recession not expected
BERLIN (AP) — The German government says the country’s economy is in a weak phase but it doesn’t currently see indications it will enter a long-term recession.
The German economy, Europe’s largest, contracted by 0.1% in the second quarter and is widely predicted to shrink again in the third quarter, which would put it into a technical recession.
The Economy Ministry said Friday that data in September, the last month in the quarter, don’t point to a turnaround, with exports moving sideways and no sign of an industrial recovery even though the construction sector remains strong.
The Ministry says “the German economy is in a weak phase; the subdued global industrial growth is affecting the export-oriented German economy.”
But it adds: “a stronger downturn, or even a pronounced recession, is not currently expected.”