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The German economy experienced a slight contraction of 0.1% in the second quarter of 2024, reversing the modest growth seen in the first quarter, according to official data released by the Federal Statistical Office on Tuesday.
Economic Performance Overview
The quarter-on-quarter shrinkage follows a 0.2% expansion in Germany’s Gross Domestic Product (GDP) during the first quarter of 2024. The latest figures confirm the preliminary data previously released by the statistics office, signaling that the German economy faced renewed challenges in the spring of this year.
Ruth Brand, president of the Federal Statistical Office, commented on the data, stating, “After the slight increase in the previous quarter, the German economy cooled down again in spring.”
Year-on-Year Revision
In addition to the quarter-on-quarter contraction, the office revised its year-on-year change for the second quarter in price- and calendar-adjusted terms to 0.0%, an improvement from the initially reported -0.1%. This revision suggests that the German economy managed to maintain its output levels compared to the same period in 2023, despite the challenges faced in the current quarter.
Detailed Report Available
For those interested in a more in-depth analysis, the Federal Statistical Office has provided a detailed report on its website, offering a comprehensive breakdown of the factors contributing to the economic contraction.
Implications and Outlook
The contraction in Q2 raises concerns about the resilience of Europe’s largest economy amid ongoing global economic uncertainties. The decline suggests that Germany may face increasing challenges in maintaining growth momentum as it navigates potential headwinds such as slowing global demand, energy concerns, and inflationary pressures. Economic analysts will be closely monitoring subsequent data to gauge the trajectory of the German economy in the second half of the year.
