Germany’s Steeper Economic Slump Tests Merz’s Growth Push

Germany revealed a steeper contraction in its economy than first estimated in the second quarter, increasing the urgency for Chancellor Friedrich Merz to deliver on promises to reignite growth.

The 0.3% slump in gross domestic product was far worse than the preliminary reading of -0.1%, largely due to manufacturing weakness following a surge in US business at the start of the year to avoid tariffs.