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.
112 Articles
112 Articles
Germany's economy has shrunk again in the second quarter. Now the expectations of the economic experts rest on the federal government's debt package. However, this makes it difficult to achieve sustained higher growth.
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The German GDP contracted by 0.3% in the second quarter, much more than initially expected. The country is still stuck in a deep industrial crisis, which is calling into question the export model which has been its own for decades.
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German economy shrinks by 0.3% in second quarter in worse showing than initially thought
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…
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