Germany

Weak German growth clouds Franco-German summit

Wikimedia Commons/Andreas Praefcke
2 min

Europe's most successful economy posted disappointing growth figures on Tuesday, sending the euro falling on the markets against the dollar and the yen.

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Germany reported a 0.1 percent expansion in Gross National Product in the second quarter and slower first quarter expansion than initially reported, raising fears that the economy is losing its momentum.

Analysts had forecast 0.4 percent growth for the second quarter.

Dossier: Eurozone in crisis

The country's federal statistics office, Destatis issued a statement which noted "The dynamism in the German economy has cooled significantly since the robust start to the year."

Destatis said the 0.1 per cent growth in the second quarter compared to the first quarter was based on only feeble expansion in exports, which are the backbone of the German economy.

German imports increased more than exports in the second quarter, while consumer spending diminished and investment in construction dropped, all contributing to slower growth.

France reported zero growth over the same period.

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