Think tanks claim Germany is at risk of recession

<p>Germany could be more at risk of recession, according to a group of think tanks.</p>

Germany could be at a greater risk of sliding into recession, as the nation's growth forecast has been slashed by a group of think tanks.

As the largest economy in the eurozone, the country has for a long time been considered the stalwart of the single currency region, remaining in growth and maintaining comparatively low joblessness levels – but a semi-annual report indicates Germany is not immune to the sovereign debt crisis.

The four think tanks – Ifo in Munich, IFW in Kiel, IWH in Halle and RWI in Essen – slashed their German growth forecast from two per cent to one per cent – but this is only in the event matters do not worsen.

"Over the forecasting period as a whole, the downside risks prevail and there is a great danger that Germany will fall into a recession," they stated.

The German Dax opened lower this morning (October 12th) and at 08:40 BST it was down 0.1 per cent to 7273.3 points.

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