Germany continues to grapple with challenges in its manufacturing sector as it suffers from higher energy costs, Goldman Sachs economist Peter Oppenheimer told CNBC on Tuesday.
The EUâs largest economy officially slipped into a technical recession in the first quarter of the year as GDP growth was revised from zero to -0.3%. The Bundesbank announced on Monday that the economy is likely to shrink this quarter thanks to slow private consumption and the increasing weakness of industry.
âThe predicament that the economy is facing at the moment is really down to a number of factors,â said Oppenheimer, who is chief global equity strategist and head of macro research EMEA at Goldman Sachs.
âItâs⌠not a deep recession but itâs obviously been more hit by obvious headwinds,â he added.
