EU's Largest Economy Contracts in Q3
Germany's economy contracted in Q3, heightening concerns of a recession in the largest economy in Europe
According to official data released on Monday, there was a decline in output in Germany during the third quarter, which heightens the possibility of a recession in the largest economy in Europe. Germany's Federal Statistical Office (Destatis) reported that the country's gross domestic product (GDP) contracted by 0.1% in the July-to-September period, as compared to a growth of 0.1% in the previous quarter.
Consumer spending decline was the driving force behind the overall drop, while investments made by companies in machinery and equipment positively impacted GDP, according to Destatis.
The data is worrisome for the entire eurozone, as Germany, the largest economy among its 20 members, is affected.
Germany's economy is on the verge of a technical recession once again, according to Claus Vistesen, the chief eurozone economist at Pantheon Macroeconomics. A technical recession is characterized by two successive quarters of declining output. This story is ongoing and will be regularly updated.
