Germany downplays stimulus hopes as economy escapes recession – business live

Rolling coverage of the latest economic and financial news, including German growth figures

2.44pm GMT

Stocks have dipped very slightly at the start of trading in New York.

The Dow, which hit yet another record high last night, dropped by about 0.1%.

STOCKS AT THE OPEN:
– Dow down 25.32 points
– Nasdaq down 23.58
– S&P down 4.35 pic.twitter.com/JufaJRfpJM

2.21pm GMT

If Berlin won’t boost government spending, then Germany’s recovery could depend on a pick-up in global growth.

And *that* could rely on the US and China, who are still to resolve their trade dispute.

“Since the global economy is currently in a manufacturing recession, and Germany is a manufacturing powerhouse, it is no surprise that the German economy is bearing the brunt of the slowdown. Domestic demand isn’t enough to offset this global drag.

On an overall basis, Europe is a taker of global growth while China and the US are the main contributors. What we see as a more important forecaster of German GDP is the direction of U.S. and Chinese growth. If the German economy is going to do better, China needs to do better first.”

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