BERLIN (Reuters) - The fifth consecutive deterioration in Germany’s Ifo business morale survey does not represent a trend reversal in Europe’s biggest economy, the institute’s economist Klaus Wohlrabe said on Tuesday, adding recession was a long way off.
“The fifth drop in a row is a sign of normalization, we are far from a recession,” Wohlrabe told Reuters.
Wohlrabe also said, however, that the economy was nearing its capacity limits. “That is acting as a brake,” he said, adding a cooling off of the global economy was also a factor. He expected economic growth of 0.4 percent in the first quarter after 0.6 percent in the fourth quarter.
Reporting by Rene Wagner; Writing by Madeline Chambers; Editing by Paul Carrel