Germany’s central bank is warning that the country could be slipping into recession.
The Bundesbank said Monday that Europe’s largest economy “is probably set to remain lackluster in the third quarter of 2019.” It predicts that GDP “could continue to fall slightly.”
GDP for the three months ended June contracted 0.1% compared to the first quarter. A recession occurs when the economy shrinks for two consecutive quarters.
Germany is facing a host of economic problems that analysts have referred to as a “perfect storm.”
The country’s economy depends on exporters that sell goods to China and the United States, which are locked in a bitter trade war. Weak global auto sales have also hit German carmakers, while fears of a disorderly Brexit loom.
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