Germany May Already Be in Mild Recession, Bundesbank Says

  • Third-quarter GDP ‘could stagnate or decline slightly again’
  • No broad-based, long-lasting slump expected, report says

A cafe terrace in Berlin. 

Photographer: Krisztian Bocsi/Bloomberg

Germany’s economy may already be in recession, but a severe economic slump looks unlikely as things stand, according to the Bundesbank.

Gross domestic product “could stagnate or decline slightly again” in the third quarter, after a surprise 0.1% contraction in the second, the central bank said Thursday in its monthly report. In August, it had expected a small increase between July and September.