German recession fears

THE German economy slammed into reverse at the end of last year – leaving it at risk of a recession.

Output in Europe’s largest economy fell 0.7pc in the final three months of 2021 as restrictions to fight a fourth wave of Covid-19 disrupted business.

Carsten Brzeski, an economist at ING, said: ‘New restrictions to tackle the fourth wave of the pandemic as well as higher energy prices dented private consumption.

‘The likelihood of Germany being in an outright recession at the turn of the year has increased.’

France recorded a 7pc rise in output in 2021 – its best performance since 1969.