German Economy Lost Growth Momentum in Q2: Economy Ministry Report

German Economy Experiences Slower Growth in Second Quarter

BERLIN – The German economy exhibited a decline in growth momentum during the second quarter, following a robust performance in the first three months of the year, according to a report released by the Economy Ministry. This slowdown is attributed to lower levels of private consumption and underwhelming construction activity.

Despite these challenges, the ministry emphasized that the German economy remains resilient, even in light of heightened external risks primarily linked to Britain’s June decision to exit the European Union.

The ministry noted that an unusually mild winter contributed to higher-than-typical construction activity during that season, which resulted in a diminished spring recovery.

In the first quarter, the German economy grew by 0.7 percent, bolstered mainly by increased government expenditures and rising private consumption.

Preliminary figures for growth in the second quarter are expected to be announced shortly. Analysts forecast that Germany’s economy expanded by around 0.2 percent during the April to June period.