Germany confirms GDP contraction of 0.1 %

Germany’s Federal Statistical Office (Destatis) confirmed the 0.1 % contraction of Gross Domestic Product in the second quarter of 2024.

Ruth Brand, president of Destatis, noted that this contraction comes after a slight increase of 0.2 % in the previous quarter.

Analysts, including the Federal Bank, point out that despite having avoided recession, Europe’s largest economy has not managed to maintain economic expansion.

In a context marked by the high cost of energy, “the rise in credit costs, weak domestic demand and difficulties in international trade,” the German export industry has not been able to take off and give the country a boost.

However, despite the weakness in sectors such as constriction and lack of labor, the Bundesbank remains confident in a slight expansion until September.

M.Pino

With information from international media

(Reference image: Ansgar Scheffold on Unsplash)

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