Germany’s gross domestic product (GDP) remained unchanged in the second quarter compared to the previous three months, with the economy contracting by 0.2 percent year-on-year on a seasonally, price- and calendar-adjusted basis.
Stabilization of the economy
“After slight declines in the previous two quarters, the German economy stabilised in the spring,” said Ruth Brand, head of the statistics office, commenting on the results.
In the final quarter of last year, the economy contracted by 0.4 percent quarter-on-quarter, after a 0.1 percent drop in the first quarter. In the first quarter of this year, the German economy fell into recession, which is defined as two consecutive quarters of economic contraction.
Increase in consumer spending
The statistics office sees the stabilization of the economy as being due to an increase in consumer spending, which rose by 0.1 percent from April to June compared with the previous three months on a seasonally, price- and calendar-adjusted basis. Household consumption did not fall further and stabilized after a decline in the winter half of the year.
The statistics office also released today a preliminary report on government spending for the first half of the year, which showed a deficit of 42.1 billion euros. As a proportion of GDP, this represents 2.1 percent.
Source Czech Press Office
