German Economy Enters Recession

A survey of 14 economists by a German newspaper shows that most believe that the country’s economy is already in recession. By definition, a recession is two consecutive quarters of contracting GDP.

Germany’s economy did shrink in the final quarter of 2011 and contraction is expected to worsen in the current quarter, according to a report at MarketWatch. The good news is that the decline is expected to mild at around -0.5% and the economy is expected to pick up later this year.

The surveyed economists believe that the threats to the stability of the euro and the Eurozone present the greatest risk to the German economy.