The Straits Times
Published on Nov 13, 2012

Recession fears in Germany as sentiment slides


BERLIN (AFP) - Fears that the euro zone debt crisis could propel Germany into recession grew on Tuesday after investor sentiment in the bloc's biggest economy dropped unexpectedly.

The widely watched index of investor confidence compiled by the ZEW economic institute fell to minus 15.7 points this month from minus 11.5 last month.

Analysts polled by Dow Jones Newswires had expected a gain to minus 10.0 points.

"Prevailing recessionary developments in the euro zone impact the German economy via foreign trade and a lack of confidence," said ZEW chief Wolfgang Franz in a statement.