German institutes warn of recession if trade conflict escalates

BERLIN (Reuters) - An escalation of the trade conflict started by the United States could cause a major recession in Germany and Europe, Germany's leading economic institutes said in a document seen by Reuters on Wednesday.

"Retaliatory measures by the EU would probably ease the economic downturn in the EU and cause a major recession in the United States," the institutes said in the document.

(Reporting by Gernot Heller and Rene Wagner; Writing by Michelle Martin; Editing by Joseph Nasr)