Central Banks
German Economy Held Back by Falling Investment, Consumption
- GDP shrank 0.1% between April and June, as initially estimated
- Private consumption fell 0.2%; government spending was up 1%
A worker welds steel near a new station entrance at the refurbishment work site of Deutsche Bahn AG's Riedbahn railway line in Walldorf, Germany, on Tuesday, Aug. 20, 2024.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
Investment and consumer spending weighed on Germany’s economy in the second quarter — dashing hopes that the country can finally leave behind years of stagnation.
The 0.1% contraction in gross domestic product included a 2.2% plunge in capital investment and a 0.2% drop in private consumption, the country’s statistics office said Tuesday. Government expenditure, meanwhile, was up 1%.