German economy remains in a sluggish phase
The German Economy Ministry said on Monday that the economy will not be extending into recession state as it faces a slow growth phase.
However, for the third quarter of the year, the German economy is expected to contract due to weakened export activities as Brexit continues to bring uncertainty to the European Union.
“A stronger slowdown or a pronounced recession is not to be expected at the moment. The export-oriented German industry is facing weak global trade, stagnating global manufacturing and falling demand for cars,” said the economy ministry.
“The German economy remains in stagnation. Economic activity is stuck at the existing level,” he added.
Tagged as Europe’s biggest economy, Germany previously suffered manufacture slowdown which affected the other sectors of its economy.
However, the ministry noted the bright side of the story: that the growth in services and construction was compensating for a recession in the export-dependent manufacturing sector.
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