German economy dodges recession

German economy dodges recession

In the final quarter of 2018, the German economy stalled, narrowly dodging recession because the fallout from global trade clashes and Brexit threatened to heavily impact a decade-long expansion in the EU’s number one economy.

GDP in Europe's leading economy was intact for the quarter, as the Federal Statistics Office informed on Thursday. By the way, a Reuters survey had foreseen a 0.1% leap.

German businesses are grappling with a decelerating global economy as well as trade clashes triggered by American leader. Moreover, there’s a high probability that the United Kingdom will abandon the European bloc in March on the terms of its withdrawal without an agreement.

With surge intact in the fourth quarter, the German economy dodged recession in the form of two or more consecutive quarters of contraction having dived by 0.2% in the third quarter.

The German economy rallied at its weakest tempo for five years last year. Surge is anticipated to dive further to 1% in 2019, and Germany experiences a budget shortfall of nearly 25 billion euros by 2023.

The fallout from the trade disputes as well as fears about Brexit are putting pressure on business confidence that keep slipping for the fifth month in a row.

Morale is also being suppressed by weaker demand for German services and goods in the euro zone, China as well as emerging markets.

Moreover, the German cabinet is concerned that technological innovation along with the acquisition of German industrial know-how by foreign, especially Chinese businesses could affect the manufacturing base on which much of Germany's prosperity is based.

The previous week, Peter Altmaier, the country’s Economy Minister told that the cabinet might take stakes in major domestic companies to avert foreign takeovers. From his point of view, such a move is required to safeguard the country’s prosperity.


What will move the market on November 8-12?
What will move the market on November 8-12?

The last week was so eventful for traders: FOMC Meeting, Bank of England’s rate decision, the OPEC+ meeting, and also NFP. This week is going to be interesting as well! Let’s see what you should focus on.

Latest news

FED and BOE Make Another Attempt to Beat Inflation
FED and BOE Make Another Attempt to Beat Inflation

The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera