Germany’s central bank anticipates that the country’s economy, Europe’s biggest, will be more or less stagnant again in the current quarter – adding to a string of weak performances.

German gross domestic product (GDP) stagnated in the second quarter after declining in both of the two previous quarters as the country struggled with high energy prices, rising borrowing costs and weakness in China, which has been a key trading partner.

The International Monetary Fund (IMF) forecast last month that Germany would be the globe’s only major economy to shrink this year, even with feeble economic growth around the world amid rising interest rates and the threat of growing inflation.

A monthly report Monday from the Bundesbank, Germany’s central bank, indicated that the picture isn’t about to improve. “In the third quarter of 2023, German economic output will probably remain largely unchanged again,” it wrote.

The bank said that, while private spending should continue to recover thanks to stable employment, significant pay increases and declining inflation, industrial production is likely to remain weak for the time being because of declining foreign demand, and high financing costs are expected to continue weighing on investment.