August 23, 2019 / 4:12 PM / 5 months ago

German government sees economy sliding into recession: Der Spiegel

FILE PHOTO: Loading cranes are seen at a shipping terminal in the harbour at Hamburg, Sept. 18, 2014. REUTERS/Fabian Bimmer

BERLIN (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 stabilize 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

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