Germany's economic growth hits all-time low

Germany's economic growth has reached a historic low as the risk of recession in one of EU's leading countries has grown to 50 percent.

Photo: flickr.com by Paul Korecky, CC BY-SA 2.0

According to the German Institute for Macroeconomics and Economic Research, the probability for the German economy to fall into recession in the coming months already amounts to 49.2 percent (vs. 44.4 percent in early July).

The German economy is stagnating, experts explain. Industry needs an impetus to get out of it. However, the situation on the financial market is deteriorating, as is investor sentiment. Demand for goods, especially imported ones, remains too weak, and so does private consumption.

To crown it all, the number of unemployed people in Germany growing, whereas real wages in the country are now lower than in early 2018.