The German central bank said on Monday that the German economy could contract in the three months to September, and that the slowdown in exports now threatens to affect the domestic economy as well.
According to the Bundesbank monthly report: “German economic production may fall again slightly in the third quarter of 2019."
"Early indicators now provide few indicators of sustainable recovery in exports and stability in industry," the central bank said.
The German economy slowed sharply last year, as the traditional growth engine - exports – suffered from trade dispute between the United States and China.
The German central bank said the decline began to affect the rest of the economy, adding that a direct recession was unexpected to happen.
It is noteworthy that
the euro stabilized against the U.S dollar near its highest level in two months
at 1.1164 after recording a peak of 1.1179.