There are no signs of a turnaround for the euro zone after six straight quarters of recession, and even once mighty Germany is struggling, according to the Royal Bank of Scotland's latest World Economy Barometer.
"Germany is looking less like Bayern Munich and a bit more like a mid-table laggard," RBS economist Marcus Wright said, referring to Munich's soccer team which has dominated the European championship this season. "[Germany's] mighty manufacturing sector is languishing in a lower mid-table position."
(Read More: Germany in 'Stagnation,' Top Merkel Advisor Warns)
The global composite PMI (purchasing managers index), which combines manufacturing and service sectors fell to a six-month low in April and Wright said Germany's deviation from its long-term trends are of concern.
Wright said increased consumer and government spending in Germany is exactly what the country and the periphery need rather than Chancellor Angela Merkel's austerity drive.
"The depressed nature of the PMIs in peripheral Europe and France, alongside other economic indicators is prompting questions over region-wide austerity policies," he said.
(Read More: Germany 'Risks Becoming Europe's Sick Man Again')
"Germany's government has a small budget surplus, meaning it could step in and spend a little more."
However, Wright said Germany does have wage growth in its favor, unlike the U.K.
"Wages in the country are growing at around 3 percent year-on-year. In stark contrast, earnings in the U.K. are currently growing by a paltry 0.4 percent and haven't grown at 3 percent for over four years."
(Read More: France Slides Into Recession, Germany Disappoints)
Japan was the only country that saw an improvement in both its manufacturing and services PMI data in April, but Wright is concerned even that could fizzle out.
"PMIs in Japan fell back in March but the readings remain very healthy compared to the past. This is welcome news for the global economy," Wright said. "But we remain concerned that it could fizzle out without structural reform alongside the current aggressive monetary easing."
—By CNBC.com's Jenny Cosgrave; Follow her on Twitter