Omicron leaves Germany on brink of recession as growth dips

KIFI

Published January 14, 2022 3:23 AM

By DAVID McHUGH
Associated Press

FRANKFURT, Germany (AP) — The risk of recession is looming for Germany after Europe’s biggest economy shrank at the end of 2021 and as it faces a bumpy start to this year. The rapid spread of COVID-19’s omicron variant is deterring people from shopping and travel and supply bottlenecks are holding back manufacturers. The state statistics agency said Friday that output in Germany fell by between 0.5% and 1% in the fourth quarter. Forecasts are also shaky for the first three months of 2022, and two straight quarters of falling output would leave Germany in recession. For all of last year, the economy grew 2.7%, rebounding from a plunge of 4.6% in 2020. It lags estimated eurozone growth.

Article Topic Follows: AP National Business

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