Confirmed contraction of Germany's GDP in the second quarter.

In the second quarter of 2024, the German economy contracted by 0.1% compared to the previous period, reversing the 0.2% increase in the first quarter and matching the pre-estimate.

Private consumption decreased by 0.2%, a reversal from the 0.3% increase in the first quarter.

At the same time, total fixed capital formation also worsened (-2.2% vs 0.1%). This was due to pressure from a decrease in construction investment (-2.0% vs 0.8%) and equipment investment (-4.1% vs -1.6%).

Simultaneously, net trade became a drag on the economy, decreasing by 0.1 percentage points from the previous quarter's positive contribution. Exports contracted (-0.2% vs 1.3%) and imports stagnated (vs 0.8%).

On the other hand, government spending reversed from a 0.1% decrease in the first quarter to a 1.0% increase.

On an annual basis, it shifted from a 0.1% decrease in the first quarter to zero growth.

Source: Federal Statistics Office