Germans expected to heighten recession fears

GERMANY is tipped to report a decline in GDP after weak UK output stoked fears of a global recession.

The UK unexpectedly posted a 0.2 per cent fall in GDP for the second quarter on Friday, sending the pound to its lowest level for two years. Economists predict Germany, the EU’s largest economy, will this week post a 0.1 per cent decline in GDP for the three months to June.

The UK and Germany are at risk of being classed later this year as in recession which is defined as two quarters of falling growth.

The UK contraction has been put down to stockpiling ahead of the first Brexit deadline of March 31. Since then companies have used up the stock rather than ordering more, dampening demand.

Trade tensions have hit Berlin. Andrew Kenningham, chief European economist at Capital Economics, said: ‘The reason Germany is doing so badly is because it has such a large manufacturing sector.’