Germany's economy avoided falling into recession during the final three months of last year. This means that it avoided two consecutive quarters of negative GDP growth, which is the definition of a recession. This was a small, but positive, surprise for all analysts who, after the July-to-September period that featured a 0.3% decline, predicted the continuation of this negative trend.
Reasons for slower growth last year include a slowdown in the global economy and a weaker car sector, with German consumers less willing to buy new cars amid confusion over new emission standards.
Joe Johnson, senior financial analyst, told the BBC that US tariffs on EU car exports, which US President Donald Trump has threatened, could have a major impact on Germany. He expects that, if this happens, Germany will fall into recession.
What can be concluded from the text above?
If US brings tariffs on EU car exports, Germany will fall into recession.
Germany’s GDP growth was negative during the third quarter of last year.
New emission standards made an impact on German customers.
If GDP growth during the first quarter of this year is negative, Germany will technically be in recession.