first time in over a year, the German economy shrank in the spring. Between April and June, the gross domestic product fell year on year by 0.2 percent. Causes are weak external demand and low investment.
The German economy shrank in the spring for the first time for over a year. Because of the weakening foreign trade and declining investment, gross domestic product fell from April to June by 0.2 percent the previous quarter, the Federal Statistics Office announced on Thursday. Economists polled by Reuters had on average expected to stagnate. In the first quarter, the economy
The expected damper was still increased (revised) 0.7 percent and had mainly benefited from the mild winter construction.
As exports grew less strongly than imports, the trade dampened overall economic activity, as the statistician explained. “In addition, investments were particularly in buildings significantly.” By contrast, private consumers and public budgets have each increased their consumption somewhat.
Following the rapid start to the current year, the German economy was thus expected by many economists damper. However, the statisticians corrected the growth rate for the first quarter down slightly from 0.8 percent to 0.7 percent. At that time about the construction industry benefited from the mild winter.
Mini-growth for euro-zone
Now attended the many trouble spots around the globe for uncertainty, in particular the Russia-Ukraine conflict and developments in the Middle East. Which could not entirely escape the export nation Germany.
Europe’s largest economy was last engine of growth of the monetary union. By the setback in the German economy in the second quarter, it would be gone not so good for the Euro-zone – especially the French economy stagnated only. The data for the currency area to be published later in the morning. Experts forecast a GDP growth of 0.1 percent.