Today’s news that the German economy, the powerhouse of Europe, had narrowly avoided a ‘technical recession’ in the second half of 2018 is another red light flashing for the world economy. In 2018, German real GDP growth was 1.5% down from 2.2% in 2017. This was the weakest growth rate in five years And in the second half of last year, the growth was slowing fast, up only 1.1% yoy compared to 2% in Q2 2018. It fell 0.2% in Q2 over Q1 and rose just 0.3% in Q3.
As for Germany’s industrial sector, that clearly is in recession. Industrial production in Germany decreased 4.7% in November of 2018 over the same month in the previous year.