The German economy, Europe's largest, shrank for the first time in almost four years in the second quarter of 2008, official figures show.
The downturn was driven by a decline in exports and consumer spending.
The economy contracted by 0.5% compared with the first three months of the year - less than had been expected.
A German finance minister said the economy could contract again in the next quarter which would mean Germany was officially in recession.
"At the moment that cannot be ruled out," said deputy economy minister Walther Otremba.
However, despite the sharp slowdown in the Three German troops injured in Afghan bomb attack ...
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Economists expect the eurozone economy to also have contracted in the second quarter, when figures are released later.
(BBC)
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