Germany has officially plunged into recession after a steeper-than-expected fall in economic activity in the third quarter, dragging down the overall performance of the 15-country eurozone.
Gross domestic product in Europe’s largest economy contracted by 0.5 per cent in the three months to September compared with the previous three months, extending a revised 0.4 per cent fall in the previous quarter.
The data confirmed the sharp turnaround in Germany’s economic fortunes since the start of the year. Exports, which had powered growth, have gone into reverse amid tumbling demand for German industrial goods. Moreover, tumbling oil prices, lower official interest rates and a softer euro are not expected to bring any early relief.
Forward-looking economic indicators, including for industrial orders, offer little prospect of a rebound until well into next year – raising the prospect of a downturn across Europe on a scale not seen since the early 1990s.