Rolling coverage of the latest economic and financial news, including new growth figures from Germany
- Breaking: German GDP shrank 0.1% last quarter
- Exports have fallen as trade wars bite
- Germany has only grown by 0.4% over the last year
Germany isn’t technically in recession yet — that would mean two successive quarters of negative growth.
But still…. its economy has really struggled over the last year, and has contracted in two of the last four quarters.
Germany’s exporting powerhouse stumbled in the April-June quarter.
German exports fell during Q2, Destatis says, which is why the economy shrank by 0.1%.
Household final consumption expenditure increased, together with government final consumption expenditure.
In addition, more was invested than in the first quarter, however, gross fixed capital formation in construction declined. The development of foreign trade slowed down economic growth because exports recorded a stronger quarter-on-quarter decrease than imports.