The Dax index opened on the back foot this morning (January 15th) on news the German economy suffered a sharp growth slowdown over the course of 2012, indicating output contracted in the final quarter of the year.
According to preliminary figures from Destatis, the nation's official statistics bureau, the economy grew by 0.7 per cent over the 12-month period, which undershoots analysts' projections of 0.8 per cent and is far lower than the three per cent logged in 2011.
Some believe Germany's slowdown will continue into the first quarter of 2013, leading to two consecutive quarters of shrinkage which is indicative of a technical recession.
Despite the gloomy outlook, Destatis stated: "In 2012 the German economy proved to be resistant in a difficult economic environment and withstood the European recession."
At 09:45 GMT, the Dax in Frankfurt slipped by 0.1 per cent – or 9.9 points – to an index value of 7719.5 points.
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