Germany stagnates

GERMANY avoided recession by a hair’s breadth last year as activity dived amid a US trade crackdown and Brexit jitters.

There was no growth in the final three months of 2018, after a 0.2pc contraction in the previous quarter. The figures sparked alarm from economists amid concerns the eurozone could be headed for turbulence. Germany’s vital manufacturing sector has been buffeted by global trade restrictions under US President donald Trump, and a steep slowdown in demand for cars.

Carsten Brzeski, chief economist at investment bank ING, said: ‘The black eye just got blacker. The upside from this is that it can hardly get worse.’