30 July 2024 , 10:59
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Germany’s economy is back on the brink of recession. However, the Eurozone economy grew more than expected in the second quarter.
Germany’s GDP shrank by 0.1% in the second quarter of this year, new data from statistics body Destatis shows.
That’s a blow to Berlin’s government, which has been hit by an ailing train network, the surge in energy prices after Russia’s invasion of Ukraine, protests by farmers, weaker demand from China, and a rise in support for far-right politicians.
Economists had expected growth of 0.1% in the quarter.
The decline in activity was due to a fall in manufacturing and construction investments.
Destatis reports that “investments in equipment and buildings, adjusted for price, seasonal and calendar effects, in particular decreased” in the last quarter.
The drop in GDP in the last quarter follows 0.2% growth in the first quarter of 2024.
A technical recession is defined as two quartery contractions in a row.