Central Banks
Germany’s Economy Risks Period of Stagnation, Bundesbank Warns
- Economic output may be more or less flat in fourth quarter
- Pay growth seen outpacing that of other euro-zone countries
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Germany’s economy may end the year in stagnation after a shallow recession in the six months through September, according to the Bundesbank.
Output probably fell “slightly” in the third quarter, after a 0.1% drop in the second, the central bank said Thursday in its monthly report. Gross domestic product should then stay broadly stable in final three months, it said, again dismissing the chance of a deep downturn.