Bundesbank: Deep recession not in the cards for Germany

Author: Justin Low | Category: News

The German central bank comments in its monthly report

  • Economy may have contracted in Q3
  • Sees risk of slowdown in exports affecting domestic economy as well
  • There are increasing risks of a spillover from industrial slowdown to domestic demand
  • However, a deep recession is not expected
It's a slow climb down for Germany and their high horse as they come to acknowledge the potential spillover effects from the manufacturing recession. With regards for a longer and more protracted slowdown, this is their comment:

"A recession in the sense of a significant, broader and longer-lasting decline in output with underutilised capacity is currently not in view."
I reckon it'll only be a matter of time before that outlook changes as well.

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose