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Breaking: German GDP flatlined in October-December
German economy only grew 0.6% in 2019

8.15am GMT
The risk of a full-blown recession is hanging over Germany, says economist Carsten Brzeski of ING.
He fears that the Covid-19 outbreak will hurt Germany, although a pick-up in construction could cushion the blow.
Looking ahead, the latest soft indicators and industrial data for December do not bode well for the short-term outlook. Also, the impact from the coronavirus on the Chinese economy is likely to delay any rebound in the manufacturing sector as it at least temporarily disrupts supply chains.
However, despite these rather discouraging factors, there are several – partly technical – drivers which should soften any pessimism. The poor performance of the construction sector in the fourth quarter was mainly driven by the Christmas break. With mild winter weather, a rebound in the first quarter looks likely. Also, changes in the inventory cycle could support growth in the short run.
Some weeks ago, we had started to investigate which form the recovery could take from the alphabet soup of options. Will it be a ‘V’ for a strong rebound, a ‘U’ for a longer bottom followed by a strong rebound, a ‘J’ for a longer period of stagnation followed by a weak rebound, an ‘L’ for a long period of stagnation or even a ‘W’ for a double dip recession? Today’s data shows that the alphabet soup has been taken off the menu for the time being.
Stagnation, with a risk of a technical recession, currently looks like the only dish served.
There's no end in sight to Germany's stagnation, says @carstenbrzeskihttps://t.co/c0DMAzrOnH
7.58am GMT
Stagnation is bad, but there’s some relief that Germany didn’t do even worse.
Oliver Rakau of Oxford Economics feared German GDP could actually have contracted in the last quarter, given recent weak data:
Phew! German GDP stagnated in Q4. That was slightly below Consensus, but monthly hard data would have suggested something much worse. At the margin a slight relief. Now waiting for @destatis_news to provide some commentary as regards the composition.
Friday cheer from Germany. Yes, GDP growth is zero, but at least it wasn't contraction. And Q3 growth revised up to 0.2%. That's worthy of a `woo hoo!' given some fears for what today might bring. pic.twitter.com/j5t8pEpND0
[EUR] Germany's latest economic figures (GDP) are not particularly shocking, yet the country's domestic economy remains the Achilles' heel of Europe. Taking into account the impending impact of the virus, concerns are still perfectly justified. Continue reading...