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 some 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 thinks that, if this happens, Germany might fall into recession.
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