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German economy could contract in H2 - economy ministry report

Reuters
FILE PHOTO: A square in Tuebingen, Germany

BERLIN (Reuters) - Germany's outlook has "dramatically worsened" and the economy could stagnate or contract in the second half of the year, an economy ministry report said on Tuesday.

A rising number of companies are going insolvent but there is no "insolvency wave" as such, the report said, adding that Germany's labour market has defied global uncertainties for the time being and demand remains high.

(Writing by Matthias Williams, editing by Rachel More)