Germany’s economy shrank by 0.3% in the first quarter of 2019, putting Europe’s largest economy into a recession. It’s the first contraction of the German economy since 2015.
The German economy has been battered by slowing exports and a decline in investment, despite strong consumer spending. The contraction makes Germany the latest major economy to succumb to economic troubles, as the knock-on effects of President Donald Trump’s trade war with China, as well as a slowdown in the rest of the European Union, affects countries around the world.
The German government is facing mounting pressure to introduce measures to stimulate growth, such as tax cuts and government spending. The eurozone, of which Germany is a part, also faces a precarious situation, with a number of economic indicators indicating a potential recession.