Germany set to slip into recession

Germany is likely to slip back into recession, putting the eurozone in jeopardy of contraction, a economic forecasting agency has said.

The London-based Centre for Economics and Business Research is predicting that after a brief spell of weak economic growth, the eurozone is perilously close to stagnating and falling back into contraction.

Its real GDP growth forecast for 2014 has been cut to 0.7% from 1.1% in July as the eurozone’s three biggest economies — Germany, France, and Italy — continue to struggle.