Germany on 'brink of recession'

Germany's economy shrank by approximately 0.25% in the fourth quarter of last year, raising fears Europe's second largest economy is on the brink of recession.

Analysts blame a decline in foreign sales for the contraction, brought on by a weaker global economy and waning demand from troubled eurozone neighbours. The growth that did occur was powered by investment and consumer spending, in addition to a boost from steadily falling unemployment. According to Christian Schulz, an economist at German Berenberg Bank, Germany's gross domestic product is expected to contract again in the first quarter of 2012, he told Bloomberg. A recession is defined as two consecutive quarters of declining GDP. "If the euro crisis does not get worse or is f...