German Economy Contracts Unexpectedly in Second Quarter

Date: 31 July 2024 - 22:16

News ID: ۱۲۹۹۴۷

BERLIN (DW) - Germany’s economy unexpectedly shrank in the second quarter, according to data released on Tuesday.
The country’s gross domestic product (GDP) fell by 0.1% compared to the first quarter, the federal statistics office Destatis said.
Analysts surveyed by FactSet had previously forecast 0.1% growth for the same period.
“Germany’s economic growth in the second quarter was as underwhelming as the country’s modest medal tally at the Paris Olympics so far,” said ING analyst Carsten Brzeski.
The news comes after modest growth in the first quarter had raised prospects of a recovery in Europe’s largest economy.
Statisticians pointed to weak investment as the reason for the second quarter contraction
Germany’s economic slump also stands in contrast to modest growth of 0.3% across the eurozone, according to figures released by the EU statistics agency Eurostat on Tuesday.
“Germany is performing very poorly at the moment, especially in comparison with neighboring European countries where we have seen quite robust growth figures,” said LBBW economist Jens-Oliver Niklasch.
“Of course, Germany’s export-orientated industry is more exposed to the weakness of the Chinese economy, for example, but many of the problems are homemade,” he added.