A RECESSION in Germany “now seems likely” as the economic powerhouse of Europe continues to be hit with a raft of disappointing financial data.

The gloomy forecast for the financial infrastructure of Berlin came from Stefan Schilbe of HSBC, who described recent downcast economic data from Germany as both “bad and unexpected”. Fears of an economic collapse have intensified in recent weeks after figures released back in November revealed the German economy shrunk for the first time since 2015. Gross domestic product (GDP) contracted in the third quarter compared to the previous quarter by 0.2 percent, according to the Federal Statistical Office. Economists are now warning of a downward trend continuing after a slew of weak economic data continues to point toward a cooldown in Europe’s most powerful nation.

A recession is defined by economists as GDP falling for two consecutive quarters.

Mr Schilbe told Business Insider: "The decline was broad-based across sectors, with no bright spots.

“Manufacturing fell by 1.8 percent month-on-month with the consumer goods sector once again being the major drag.

“Today's data were both bad and unexpected.

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Let's see them try to spin that one to the citizens.