It's official: the German economy contracted between April and June. It is the second consecutive quarter of contraction in Europe's main economy, at a time when Germany is one of the markets investors are most aware of following the Bundesbank's recession warning.
The federal statistical office (Destatis) confirmed on Tuesday that Germany's Gross Domestic Product (GDP) contracted by 0.1% in the second quarter of 2019 mainly due to the sharp fall of 1.3% in the country's exports – much higher. 0.3% of imports fell over the same period.
“The development of foreign trade slowed economic growth in the second quarter of 2019,” explained the local statistics office, noting that the German trade balance made a negative contribution of 0.5% to Germany's economic performance.
Nevertheless, German household consumption was positive (0.1%), although it was below 0.8% in the first three months of the year.
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