German GDP slows in second quarter
Germany economic growth slowed to 0.3 per cent in the second quarter on a sharp drop in investment, adding to evidence that Europe’s largest economy can no longer be relied on to pull the Eurozone out of a deep slump.
The German Statistics Office confirmed a preliminary estimate showing German gross domestic product slowing from 0.5 per cent expansion in the first quarter, as gross capital investment dropped 0.9 per cent, subtracting 0.2 percentage points from overall growth.
“German growth remains well-balanced but signs of waning strength are increasing,” said ING’s Carsten Brzeski.
Brzeski said the sharp drop in orders from other Eurozone states showed the crisis had already reached the German economy.
“The safety net of richly filled order books and low inventories has become thinner very rapidly, not boding well for growth in the second half of the year,” he said.