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Germany Slips Into a Technical Recession as GDP Contracts 0.5% in the Third Quarter

Thursday, 13 November 2008 06:14:06 GMT

Written by David Song, Currency Analyst

The preliminary GDP reading for Germany showed that Europe’s largest economy slipped into a technical recession as the economy contracted 0.5% in the third quarter. The release failed to meet expectations for a 0.2% decline in growth, which suggests that economic activity is slowing at a faster pace the initial forecast held by economists. Meanwhile, the growth reading for the second quarter was revised slighter higher to -0.4% from an initial reading of -0.5%, and despite the unexpected improvement, growth prospects for the Euro-Zone remains bleak as the three largest economies amongst the 15 nations operating under the euro head into a recession.

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