BERLIN: The German government expects Euro­pe’s largest economy to slide into recession in the third quarter, Der Spiegel magazine reported on Friday.

The government forecasts output will contract slightly in the July-September period as it did in the second quarter, the magazine said, citing an internal document from the chancellery. German output fell 0.1pc in the April-June period, dragged down by a slump in exports. A recession is usually defined as at least two quarters of contraction in a row.

The German government still does not foresee a severe economic crisis, provided global trade conflicts do not escalate and Britain does not leave the European Union without a deal.

Published in Dawn, August 24th, 2019