US EditionGerman Economy Contracts 0.3% in Q2 With Stagnation Likely in Q3
- Germany's economy contracted by 0.3% during the April to June period of 2025 relative to the previous quarter, indicating a continued downturn.
- This decline followed 0.3% growth in the first quarter and resulted from a reversal of export front-loading and the full impact of U.S. tariffs imposed earlier this year.
- Output in manufacturing and construction deteriorated more than expected in June, household spending was revised downward, and exports of goods fell by 0.6% while service exports rose 1.4%.
- Dozens of companies pledged at least 631 billion euros in investments over three years, and Chancellor Friedrich Merz's administration launched a 500 billion-euro fund to support infrastructure and promote digitization.
- Economist Carsten Brzeski noted that following recent setbacks, a more meaningful economic upturn in Germany may not materialize until sometime next year, as the country faces a potential third consecutive year of economic decline.
89 Articles
89 Articles
Economic output in Germany declined in the second quarter. According to the Federal Statistical Office, the gross domestic product fell by 0.3 percent, more than expected. In an initial estimate at the end of July, the Office had expected to remain at minus 0.1 percent.
The German economy actually shrank more than thought in the second quarter
The German economy shrank by 0.3% in the second quarter compared with the previous three-month period, official data showed Friday, a significantly worse showing than was initially reported as tensions with the U.S. over tariffs simmered. In a preliminary report at the end of July, the Federal Statistical Office said gross domestic product contracted by 0.1% in April-June compared with the first quarter for Europe’s biggest economy. That contrib…
In the second quarter of the year, the German economy suffered a much more intense contraction than initially estimated by registering a fall in gross domestic product (GDP) of 0.3% compared to the previous three months, rather than a fall of 0.1% initially estimated by the Federal Bureau of Statistics (Destatis). Thus, the largest European economy experienced a marked deterioration between April and June compared to the 0.3% expansion observed …
German economy shrank 0.3% in second quarter as US tariffs slowed exports
Germany's economy shrank by 0.3% in the second quarter compared with the first three months of the year, as demand from its top trading partner the United States slowed following months of buying ahead in anticipation of U.S. tariffs.
Germany’s economy shrinks as outlook looks bleak
Europe’s biggest economy Germany shrank more than expected in the second quarter of the year and faces a bleak outlook. A downward revision to GDP growth in the most recent three-month period came after the country’s central bank recently warned that the economy would stagnate over the summer: A front-loading of exports ahead of the imposition of US tariffs was largely reversed, “and it looks increasingly unlikely that any substantial recovery w…
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