Germany’s economy shrank 0.1% in the second quarter of 2025, according to price-, seasonally- and calendar-adjusted figures released in Wiesbaden. The decline extends the country’s weak performance and was led by lower investment, the Federal Statistical Office said. Separate statistical revisions show the euro area’s largest economy slipped into recession in the final quarter of 2022 and failed to record any growth in the subsequent two years. The protracted stagnation underscores the depth of the challenges facing German industry and policymakers as they contend with higher financing costs and faltering global demand. Elsewhere in the currency bloc, Italy’s statistics office estimated that Italian output also contracted 0.1% in the second quarter. On a trend basis, Italy’s GDP was 0.4% higher than a year earlier, highlighting the patchy and fragile nature of the region’s recovery.