Germany registered a stagnant economy in the second quarter, with zero growth in gross domestic product (GDP), the national statistics institute Destatis said on Friday.
The final data on the GDP of the main European economy confirmed the initial estimate made at the end of July, since it had previously fallen by 0.4% and 0.1% in the two previous quarters, according to data corrected for prices and variations. seasonal. .
In the space of one year, the indicator registers a decrease of 0.6%, corrected for inflation.
“After slight falls in the previous two quarters, the German economy stabilized in the spring,” Destatis president Ruth Brand said in a statement.
Industrial production remained weak, rising just 0.1% during the quarter, despite the gradual removal of supply bottlenecks.
External demand has decreased, especially from the main client, China, which penalizes exports, which fell by 1.1% in total.
Despite the increasingly high financing costs, investment increased 0.6% in equipment and 0.2% in construction.
After two consecutive falls, consumer spending rose 0.1%, according to Destatis.
This evolution is explained by a labor market that remains solid, by a strong increase in wages and by a downward trend in inflation, which, however, remains high, standing at 6.5% in July.
The Purchasing Managers’ Index (PMI) continues to record two significant falls in July and August, suggesting that a further drop in German GDP is expected in the summer quarter.
The German economy could end the year in the red, at the bottom of the list of eurozone countries.
For 2023, the main German economic institutes forecast an estimated fall of between 0.2 and 0.4% of German GDP, with the IMF targeting -0.3%.
Source: TSF
