PHOTO: Bloomberg / Getty Images
Now playing
03:41
Goldman Sachs CEO doesn't expect a recession soon
American flags hang oustside of the New York Stock Exchange Tuesday, Feb. 16, 2021, in New York. (AP Photo/Frank Franklin II)
PHOTO: Frank Franklin II/AP
American flags hang oustside of the New York Stock Exchange Tuesday, Feb. 16, 2021, in New York. (AP Photo/Frank Franklin II)
Now playing
01:31
Rising bond yields trigger Wall Street sell-off
WASHINGTON, DC - FEBRUARY 01: U.S. President Joe Biden (Center R) and Vice President Kamala Harris (Center L) meet with 10 Republican senators, including Mitt Romney (R-UT), Bill Cassidy (R-LA) and Susan Collins (R-ME), in the Oval Office at the White House February 01, 2021 in Washington, DC. The senators requested a meeting with Biden to propose a scaled-back $618 billion stimulus plan in response to the $1.9 trillion coronavirus relief package Biden is currently pushing in Congress. (Photo by Doug Mills-Pool/Getty Images)
PHOTO: Pool/Getty Images North America/Getty Images
WASHINGTON, DC - FEBRUARY 01: U.S. President Joe Biden (Center R) and Vice President Kamala Harris (Center L) meet with 10 Republican senators, including Mitt Romney (R-UT), Bill Cassidy (R-LA) and Susan Collins (R-ME), in the Oval Office at the White House February 01, 2021 in Washington, DC. The senators requested a meeting with Biden to propose a scaled-back $618 billion stimulus plan in response to the $1.9 trillion coronavirus relief package Biden is currently pushing in Congress. (Photo by Doug Mills-Pool/Getty Images)
Now playing
02:08
Zandi: Stimulus plan doesn't do enough for the most in need
Now playing
01:36
Michael Bolton wants you to break up with Robinhood
Now playing
03:02
Congressman: The stock market needs to protect retail investors
Now playing
03:51
GameStop investor on why he's still holding on
why it
why it's better to invest cash than save it kristen bitterly orig_00012028.png
Now playing
01:59
Holding onto your cash? History shows it's better to invest it
In this photo provided by the New York Stock Exchange, Michael Urkonis, center, works with fellow traders on the floor during the Signify Health IPO, Thursday, Feb. 11, 2021. Stocks edged higher on Wall Street in early trading Thursday as investors continued digesting solid corporate earnings reports and maintained confidence that a new round of government aid is on the horizon. (Courtney Crow/New York Stock Exchange via AP)
PHOTO: Courtney Crow/AP
In this photo provided by the New York Stock Exchange, Michael Urkonis, center, works with fellow traders on the floor during the Signify Health IPO, Thursday, Feb. 11, 2021. Stocks edged higher on Wall Street in early trading Thursday as investors continued digesting solid corporate earnings reports and maintained confidence that a new round of government aid is on the horizon. (Courtney Crow/New York Stock Exchange via AP)
Now playing
03:08
El-Erian on risks to the market rally
PHOTO: Courtesy Kearns family
Now playing
02:56
Parents of young trader who died by suicide: Robinhood is to blame
kenny polcari market overvalued and stretched orig_00013830.png
kenny polcari market overvalued and stretched orig_00013830.png
Now playing
02:32
Polcari: A healthy market pullback of 5-7% should happen
Bitcoin
PHOTO: CNN
Bitcoin
Now playing
03:17
Tesla invests $1.5 billion in bitcoin
Now playing
02:20
El-Erian: Robinhood is a reminder that 'you have no friends on Wall Street'
People walk by a GameStop store in Brooklyn on January 28, 2021 in New York City. Markets continue a volatile streak with the Dow Jones Industrial Average rising over 500 points in morning trading following yesterdays losses. Shares of the video game retailer GameStop plunged. (Photo by Spencer Platt/Getty Images)
PHOTO: Spencer Platt/Getty Images
People walk by a GameStop store in Brooklyn on January 28, 2021 in New York City. Markets continue a volatile streak with the Dow Jones Industrial Average rising over 500 points in morning trading following yesterdays losses. Shares of the video game retailer GameStop plunged. (Photo by Spencer Platt/Getty Images)
Now playing
01:17
Here's why GameStop shares are plunging
PHOTO: CNN
Now playing
02:22
His risky bet made him a millionaire on paper. It could've gone very differently
NEW YORK, NEW YORK - JANUARY 27: GameStop store signage is seen on January 27, 2021 in New York City. Stock shares of videogame retailer GameStop Corp has increased 700% in the past two weeks due to amateur investors. (Photo by Michael M. Santiago/Getty Images)
PHOTO: Michael M. Santiago/Getty Images
NEW YORK, NEW YORK - JANUARY 27: GameStop store signage is seen on January 27, 2021 in New York City. Stock shares of videogame retailer GameStop Corp has increased 700% in the past two weeks due to amateur investors. (Photo by Michael M. Santiago/Getty Images)
Now playing
03:16
GameStop mania shakes up Wall Street
Now playing
05:26
Christine Romans: This is being fueled by the elixir of a quick profit
(CNN Business) —  

Germany’s central bank is warning that the country could be slipping into recession.

The Bundesbank said Monday that Europe’s largest economy “is probably set to remain lackluster in the third quarter of 2019.” It predicts that GDP “could continue to fall slightly.”

GDP for the three months ended June contracted 0.1% compared to the first quarter. A recession occurs when the economy shrinks for two consecutive quarters.

Germany is facing a host of economic problems that analysts have referred to as a “perfect storm.”

The country’s economy depends on exporters that sell goods to China and the United States, which are locked in a bitter trade war. Weak global auto sales have also hit German carmakers, while fears of a disorderly Brexit loom.

The Bundesbank said its gloomy outlook for GDP is “due mainly to the continued downturn in industry.” Current data show industrial production further contracting this quarter, it said. Last quarter, industrial output fell more than 5% compared to the previous year.

The central bank report is likely to increase pressure on Germany’s government to spend more to stimulate its economy. But that remains a tough sell in a country that’s notoriously wary of borrowing.

It also bolsters the case for the European Central Bank to take action when it meets in September.

Economists predict that the ECB will cut interest rates, which are already at historic lows. The ECB is also expected to signal it will restart a trillion-euro bond buying program designed to spur economic growth.

Germany is just one of several major global economies facing potential recessions.

The UK economy shrunk in the second quarter, and growth flatlined in Italy. Mexico just dodged a recession, and its economy is expected to remain weak. Data suggest that Brazil slipped into recession in the second quarter.