Economics

German Economy Stagnates, Just Barely Skirting a Recession

  • Flat GDP misses forecast for 0.1% growth in fourth quarter
  • Euro-area growth seen confirmed at 0.2%, survey shows

Daimler is preparing comprehensive cost-cutting.

Photographer: Michaela Handrek-Rehle/Bloomberg
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Germany’s economy stagnated at the end of 2018, just barely avoiding a recession, and continued trade tensions mean any pickup in Europe’s powerhouse economy could be muted.

The fourth-quarter performance means the country trailed most of its peers in the euro area, where average growth was 0.2 percent. 2019 hasn’t brought much relief so far: disappointing numbers keep rolling in and a slew of institutions have downgraded their outlooks.