Financial News: German Economy Contracts More Than Estimated In Q2

German Economy Contracts More Than Estimated In Q2

08/22/2025 - 02:30:00 (RTTNews)

(RTTNews) - The German economy shrank more than initially estimated in the second quarter, the latest data from Destatis revealed on Friday.

Gross domestic product fell 0.3 percent sequentially, reversing a 0.3 percent growth in the first quarter. In the flash estimate, the economy showed a contraction of 0.1 percent.

The expenditure breakdown showed that gross fixed capital formation declined 1.4 percent compared to the prior quarter amid a 1.9 percent fall in investments in machinery and equipment. Foreign trade was also not favorable, as exports were down 0.1 percent, while there was a 1.6 percent increase in imports.

Household consumption rose only 0.1 percent, and government consumption was 0.8 percent higher.

On the production side, the construction industry logged a significant contraction of 3.7 percent. The manufacturing sector also faced a setback in the second quarter by shrinking 0.3 percent, and production was down in almost every sector of manufacturing.

On an annual basis, the economy logged a calendar-adjusted growth of 0.2 percent after rising 0.3 percent in the first quarter. The rate of expansion was revised downward from 0.4 percent.

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