The German economy experienced a sharper decline in Gross Domestic Product (GDP) in the second quarter than initially estimated, influenced by industrial challenges in response to U.S. tariffs, as reported by the statistics institute, Destatis.
Between April and June, Germany’s GDP, adjusted for price, seasonal, and calendar variations, fell by 0.3%, according to Destatis, which had originally forecasted a 0.1% decline.
German industrial production underperformed compared to initial estimates.
In the first quarter, the German economy saw a slight growth of 0.3%.
The Bundesbank anticipates stagnation in the current third quarter, as noted in its monthly report.
Contributing negative factors include global trade turbulence and poor order book conditions.
Additionally, worsening labor market prospects and slowing wage growth are impacting private consumption.
