Germany to Enter Recession on EU Debt Crisis, Deutsche Bank Says
January 10, 2012, 12:20 PM ESTBy Nicholas Comfort
Jan. 10 (Bloomberg) -- The German economy is likely to enter a technical recession in the first half amid “high uncertainty” over Europe’s sovereign debt crisis and austerity measures in the euro area, Deutsche Bank AG economists said.
“These factors slow exports but also depress the readiness to invest,” the Frankfurt-based bank said today in a report published on Deutsche Bank’s website. “Private consumption should provide moderate impulses.”
Progress in combating the sovereign debt crisis could invigorate the German economy and especially foreign trade “somewhat” in the second half of the year, Deutsche Bank said. Gross domestic product will probably stagnate in 2012, according to the note.
To contact the editor responsible for this story: Nicholas Comfort at ncomfort1@bloomberg.net
