German government sees economy sliding into recession -Der Spiegel

Reuters
Updated

BERLIN, Aug 23 (Reuters) - The German government expects Europe's largest economy to slide into recession in the third quarter, Der Spiegel magazine reported on Friday.

The government forecasts output will contract slightly in the July-September period as it did in the second quarter, the magazine said, citing an internal document from the chancellery.

German output fell 0.1% in the April-June period, dragged down by a slump in exports. A recession is usually defined as at least two quarters of contraction in a row.

The German government still does not foresee a severe economic crisis - provided global trade conflicts do not escalate and Britain does not leave the European Union without a deal, the report said.

"We therefore see no reason for short-term measures to stabilise the economy," the document read, according to Der Spiegel.

A government spokesman declined to comment on the Spiegel report.

Earlier on Friday, a spokeswoman for the Economy Ministry said Germany was not in a recession. (Reporting by Thomas Seythal Additional reporting by Andreas Rinke Editing by Joseph Nasr/Paul Carrel)