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German Economy Shrank in Third Quarter Amid Recession Threat

  • GDP fell by 0.1% from previous three months; est. -0.2%
  • Higher consumption may lead to modest rebound next year
Shoppers walk along a pedestrianized shopping street in Nuremberg, Germany.Photographer: Ben Kilb/Bloomberg

German output shrank in the third quarter — raising the risk that Europe’s largest economy is headed for a recession.

Gross domestic product fell 0.1% from the previous three months, less than the 0.2% drop economists expected, the statistics office reported Monday, citing a pullback in household spending.

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German Economy Shrank in Third Quarter Amid Recession Threat