Germany’s economy shrank 0.3% in the second quarter of 2025 from the previous three months, the Federal Statistical Office said, revising its earlier flash reading of a 0.1% decline. The deeper contraction leaves Europe’s largest economy back in recession-like territory after barely growing in the first quarter. The revision reflects a steeper-than-initially-reported drop in manufacturing and investment. Capital spending fell 1.4% and exports slipped 0.1%, erasing any support from trade. Household consumption eked out a 0.1% gain, while government expenditure rose 0.8%, but both were insufficient to offset the pullback in business activity.
German Economy Contracts More Than Expected Due To Reversal in Trade
From the @FT: "Germany’s economy shrank by 0.3 per cent in the second quarter, a sharper contraction than previously estimated, according to official data published on Friday. A flash estimate in July had originally pointed to a contraction of 0.1 per cent in the April to July https://t.co/VEhyrtu8fl
#Germany falls back into ‘recessionary territory’ as second-quarter GDP revised down