ADVERTISEMENT
German Recession Wouldn’t Bring Down Euro-Area Economy
When German economy shrinks, it causes growth in the euro area to slow, but not enough to tip the region into recession.
08 Feb 2019, 11:39 PM IST 
The German national flag flies beside a European Union (EU) flag as a flock of birds take flight over the Reichstag building in Berlin, Germany. (Photographer: Krisztian Bocsi/Bloomberg)
(Bloomberg) -- An economic contraction in Germany would have less of an impact on the rest of the euro area than might immediately be supposed, according to research by Bloomberg Economics. When the German economy shrinks it typically causes growth in the euro area to slow, but not by enough to tip the region into recession. Other euro-area economies have demonstrated strong resilience to negative shocks from Germany in the past -- the euro-area economy shrank in only one quarter between 1995 and 2008, despite 13 contractions in Germany.
©2019 Bloomberg L.P.