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Germany may have avoided recession in Q4 by just 0.1% because the quarter was one day longer than the previous period

Germany may have avoided recession in Q4 by just 0.1% because the quarter was one day longer than the previous period
REUTERS/Costas Baltas



Germany's economy either grew or shrank by 0.1%, depending how you count it.




Either way, it's weak.




The slowdown in China, US trade tariffs, and manufacturing decline are battering the world's fourth-largest economy.




Italy sucks too.



The German economy is so weak that it may have avoided going into recession in Q4 2017 simply because the quarter contained one extra day than the previous period.
Year-on-year, real GDP in Germany rose 1.5% in 2018, down from a 2.2% increase the previous year. But on a sequential quarter-by-quarter basis that would imply that growth in Q4 may have fallen.
"Todays headline is not adjusted for the fact that 2018 had one more working day than 2017, so we probably have to assume that the fully-adjusted growth estimate would have been closer to 1.4% than 1.5%. That suggests GDP was either flat, or fell by 0.1% in Q4," Pantheon Macroeconomics analyst Claus Vistesen told clients in a note seen by Business Insider.
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