German central bank suggests economy may be in recession

Associated Press

Berlin — Germany’s central bank has issued a gloomy economic report suggesting that growth in the summer continued to shrink, raising the possibility Europe’s largest economy may be entering a recession.

A technical recession is defined as two consecutive quarters of negative growth, and Germany saw a 0.1% drop in the second quarter, from April to June.

In this Tuesday, Feb. 12, 2019 file photo, the sun sets over the city of Frankfurt with the buildings of the banking district. Germany, Europe's industrial powerhouse and biggest economy, with companies like Volkswagen, Siemens and BASF, may be entering a recession, according to a gloomy report from the country's central bank Monday, August 19, 2019.

In its monthly report Monday, the Bundesbank said with falling industrial production and orders, it appears that the slump likely continued through the summer.

It says “the overall economic performance could decline slightly once again. Central to this is the ongoing downturn in industry.”

The Bundesbank says the trade conflict between the U.S. and China, Brexit and other issues have hampered Germany’s export-dependent economy, though it’s still expected to post growth over the full year.