The German economy slightly contracted in the second quarter, which is partially attributed to reduced investments and a crisis in the construction industry, reported the local statistics office Destatis on Tuesday.
Germany’s gross domestic product (GDP) decreased by 0.1 percent compared to the previous quarter, adjusted for price, seasonal, and calendar factors, Destatis announced, confirming the initial estimate from the end of July.
Compared to the same quarter last year, economic activity increased by 0.3 percent, adjusted for price changes.
– After a slight growth in the previous quarter, the German economy slowed down again this spring – said the president of Destatis Ruth Brand.
In the first quarter, GDP increased by 0.2 percent compared to the previous three months.
According to statisticians, one of the reasons for the economic slowdown is the lack of investment in equipment, particularly in machinery, devices, and vehicles. These investments decreased by 4.1 percent compared to the previous three months, on an adjusted basis, which is even more significant than the decline in construction investments, which fell by two percent.
Foreign trade also did not provide any stimulus. Exports of goods and services in the second quarter decreased by 0.2 percent on an adjusted basis compared to the first quarter.
On the other hand, household and government consumption remained stable compared to the previous quarter, according to data from the statistics office.
The German economy has been in crisis for some time and had weaker results in the second quarter compared to other European countries such as Spain and France, notes the Dpa agency.
