This compares with the growth of 0.4% predicted at the end of April, with the government reportedly now expecting the economy to shrink in Q3 and expand only slightly in Q4 this year. Overall, the government is said to anticipate a contraction of 0.3% for the year.

These forecasts are typically slow to react to the underlying trend but it is fair to say that recession signals are beeping all over the place for Germany. So, ECB.. are ya winning, son?

This article was written by Justin Low at www.forexlive.com.