Germany: Economy avoided a technical recession – Deutsche Bank

Sandeep Kanihama FXStreet Contributor

Deutsche Bank analysts note that the German economy avoided a technical recession in Q3, with an unexpectedly positive +0.1% GDP reading (vs. -0.1% contraction expected), following the -0.2% contraction in Q2.

Key Quotes

“This echoes some other positive surprises from recent German manufacturing data recently, such as September’s better-than-expected factory orders out last week.”

“The fact that the economy didn’t fall into recession means that the pressure for German fiscal stimulus is likely to diminish further for now, and finance minister Olaf Scholz said yesterday at a Bloomberg News event that there wasn’t a reason for doing fiscal stimulus because the German economy wasn’t in a crisis.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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