Germany's gross domestic product grew 0.4% on year in 2Q. "German Economy Shrank by 0.1% in 2Q," at 0635 GMT, misstated that GDP grew 0.4% in annualized terms. It grew 0.4% on year, not in annualized terms. </s> Germany's economy shrank in the second quarter as trade dragged down economic growth amid worries that the country could slip into a recession.

Europe's largest economy contracted 0.1% from the previous quarter, as foreign trade slowed down economic growth despite robust consumption at home, according to a first estimate published Wednesday by national statistics agency Destatis.

In annualized terms, gross domestic product grew 0.4%, the agency said.

Higher private and government consumption and higher investments contributed positively in the quarter, but trade and a decline in construction dragged down the economy as exports decreased stronger than imports, Destatis said.

"Trade conflicts, global uncertainty and the struggling automotive sector have finally brought the German economy down on its knee. In particular, increased uncertainty, rather than direct effects from the trade conflicts, have dented sentiment and hence economic activity," ING Chief Economist for Germany Carsten Brzeski said.

The economic data will increase pressure on Germany's government to act amid calls for a stimulus package, he said. </s> BERLIN (dpa-AFX) - Germany's economy contracted in the second quarter on weak exports, data from Destatis showed Wednesday.



Gross domestic product shrank 0.1 percent sequentially in the second quarter, reversing the first quarter's 0.4 percent expansion. This was the first fall in three quarters and matched economists' expectations. 



After calendar adjustment, GDP gained 0.4 percent on year, but slower than the 0.9 percent growth registered in the first quarter. At the same time, the unadjusted GDP remained flat.



Data revealed that positive contribution to growth came mainly from domestic demand. Household final consumption expenditure increased, together with government final consumption expenditure. 



Investment increased from the first quarter but gross fixed capital formation in construction declined. 



The development of foreign trade dragged economic growth as exports logged a stronger quarter-on-quarter decline than imports.



Copyright RTT News/dpa-AFX </s> European Union statistics office Eurostat said gross domestic product (GDP) growth in the 19-country euro zone was 0.2% in the second quarter versus the previous quarter, a slowdown from 0.4% percent in the first three months of 2019.

The GDP flash estimates numbers, including year-on-year growth of 1.1% from the second quarter of 2019, were in line with economists' forecasts.

German GDP fell 0.1% quarter-on-quarter, Germany's Federal Statistics Office said earlier on Wednesday. The annual growth rate in Europe's largest economy slowed to 0.4% in the second quarter from 0.9% in the first.

A global slowdown has affected growth across western Europe, but Germany's traditionally export-reliant economy has been particularly vulnerable.

Industrial production in the euro zone area fell by 1.6% in June compared with the previous month, and by 2.6% from the same month in 2018. Economists had predicted less sharp drops in output of 1.4% month-on-month and 1.2% year-on-year.

Employment growth in the euro zone area slowed to 0.2% quarter-on-quarter from 0.4% in first quarter, and 1.1% year-on-year from 1.3% in first three months of 2019.

Although employment growth is on a downtrend across the euro zone area, unemployment in Germany is just above its record low of 4.9% and data on Wednesday showed France's jobless rate fell to 8.5% in the second quarter, its lowest since the end of 2008.

However, economists say the employment outlook for the euro zone's two largest economies is uncertain given their broader economic slowdowns and exposure to the impact of global trade disputes. </s> The shrank in the second quarter, dragged down by a slump in exports, data showed on Wednesday, as manufacturers in Europe's largest struggle against weaker foreign demand and trade disputes.

Gross domestic product (GDP) fell 0.1% quarter-on-quarter after a confirmed growth rate of 0.4% in the first three months of the year, the Federal Statistics Office said.

The preliminary reading for April-June was in line with a Reuters poll of analysts.

The annual growth rate slowed to 0.4% in the second quarter from 0.7% in the first, calendar-adjusted data showed. That beat the poll forecast of +0.1%.

"The development of foreign trade slowed down economic growth because exports recorded a stronger quarter-on-quarter decrease than imports," the statistics office said.

Positive contributions came from domestic demand as household consumption, government expenditure and gross fixed capital formation increased on the quarter, the office said.

Construction declined in the second quarter after the sector pushed up overall growth in the first three months due to an unusually mild winter, the data showed.

"For a year now, the has been only crawling forward," Unicredit analyst Andreas Rees said, adding there was hardly any improvement in sight for the second half of 2019 as there were many uncertainties for German exporters.

"Besides Brexit, this is above all the U.S.-Sino trade dispute and possible U.S. tariffs on European cars," Rees said.

Following release of the data, the yield on Germany's benchmark 10-year government bond dropped to a record low of -0.623%. </s> Germany’s GDP shrank by 0.1 percent in the second quarter, fuelling fears of a recession and causing economists to call for policies to tackle corporate tax cuts and increased investment in Germany. The prospects of further deterioration over the coming months due to weak exports and weak manufacturing figures give little hope for a speedy recovery according to economic experts. Martin Wansleben, Managing Director of the Association of German Chambers of Industry and Commerce (DIHK) said: “After the good start of the year, the companies have arrived in the harsh economic reality and there is currently no turning point in sight.

“Business expectations are falling in all sectors.” Mr Wansleben warned: “If we do not take countermeasures, the German economy will literally be caught out in the face of a slowing economy.” According to Bank Lampe, after a slight decline in economic output in the second quarter, Germany is facing a technical recession, ie a further decline in gross domestic product (GDP) in the current third quarter. Chief economist Alexander Krüger expects that in addition to the known problems of the industry there will be a “backlash” against the strong increase in consumption in the second quarter.

Here are four reasons Germany could be heading for a recession As the UK faces political deadlock and the Brexit deadline of October 31 approaches, countries in the EU are feeling a knock-on effect. In surveys, German business has touted the threat of the UK leaving the European Union without a no deal to be a key worry impacting the economy. Germany’s third-largest export market in Europe and the fifth worldwide is the UK, with $92bn (£76.15 billion) of goods exported in 2018. Should no-deal Brexit take place, Germany could see it's economy slump even further. Read More: Merkel's successor sees popularity slump in as pressure grows

As trade tensions between China and the US increase, Germany has been affected due to its dependence on export markets. German industrial production fell 5.2 percent year-on-year in June, which was the biggest decline since 2009. Melanie Vogelbach at the Association of German Chambers of Industry and Commerce said: “The challenges for the German economy are mainly based on international factors: trade conflicts, sanctions and the scenario of a no-deal Brexit. “Trade wars are never good and for an economy that relies as much on exports as German industry, that is a very important factor.” Exports for Germany have fallen eight percent over the past year.

As Europe’s biggest economy, and the fourth largest worldwide - Germany feels the knock-on effects of economic issues elsewhere. Ahead of the Netherlands and the UK, China is Germany’s third-largest export market and it the worst growth in the three months to June since 1992. Before the trade war began, China’s economy was already facing a slight decline, but the higher US tariffs have accelerated this. Read More: Germany heading to recession - Merkel quitting will trigger crisis </s> • Germany’s economy shrank 0.1% in the second quarter, driven by a decline in exports due to the US-China trade war.
• The slowdown is bad news given Germany is Europe’s largest economy and a key player in the eurozone.
• The contraction comes after the UK economy shrunk last week for the first time since 2012 due to Brexit fears, underlining how political uncertainty is weighing on Europe.

Germany’s economy shrank by 0.1% in the three months to June, signaling a recession could be looming.

The decline marks a sharp shift from the 0.4% growth it recorded in the first quarter of 2019, according to Statistisches Bundesamt, the Germany’s statistics office. Europe’s biggest economy grew the least in six years in the first quarter, according to the Financial Times.

Much of the decline was driven by a slump in exports, which have suffered from tempered demand due to the US and China’s trade war.

“The development of foreign trade slowed down economic growth because exports recorded a stronger quarter-on-quarter decrease than imports,” the Statistisches Bundesamt said.

Signs for the next quarter look “ominous,” Capital Economics said in an email. “Manufacturing business surveys for July were all gloomy, as was the ZEW survey for August.”

“While the services sector should continue to hold up better, there are some signs that the slump is spreading to the labour market,” the economic research firm added. “The bottom line is that the German economy is teetering on the edge of recession.”

Several of Europe’s economies are weathering growth slowdowns, many due to political uncertainty. Brexit fears fueled a 0.2% contraction in Britain’s economy last quarter – its first decline since 2012.

“Today’s disappointing GDP figure is set to raise alarm bells over Brexit dragging the UK economy deeper into the abyss,” Lukman Otunuga, a senior research analyst at FXTM, said at the time. </s> Germany's economy contracted by 0.1 percent in the second quarter of 2019, the country's statistics office said in a statement Wednesday.

It was the second time in a year Germany has reported a shrinkage in GDP in a quarterly review as the engine of the European Union starts to feel the effects of the United States-China trade war and tremors in the automobile industry.

"In the second quarter of 2019, the real (price-adjusted) gross domestic product in Germany decreased by 0.1% on the first quarter of 2019, after adjustment for seasonal and calendar variations," the government office said.

"The Federal Statistical Office (Destatis) also reports that Germany experienced a slight decline in economic performance."

"The development of foreign trade slowed down economic growth because exports recorded a stronger quarter-on-quarter decrease than imports."

The slump in the second quarter of the year comes after a 0.4 percent increase in the first.

Fears of a recession already reared their head when Germany closed out a flat year in 2018 marked by a 0.2 percent contraction in the economy in the third quarter.

Compared to the same quarter the previous year, the German economy was up 4 percent, Destatis said.

One of the driving factors behind the poor results is the ongoing trade tariff war between Beijing and Washington, the effects of which have rippled across the global economy.

According to data released in recent days, German industrial production fell 5.2 percent year-on-year, the largest decline in a decade, while exports dropped 8 percent, a three-year low.

Brexit has also added to the uncertainty, with the UK's new prime minister, Boris Johnson, harnessing a potential no-deal Brexit as an outcome while a general cooling in the eurozone also had its effect.

Germany's all-important motor industry, its main export, has also suffered a drop in demand, partly due to new emission standards put out by the European Union last year. EFE-EPA </s> BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - Euro area continued its expansion at the end of 2017, as previously estimated, taking the full-year growth to a decade-high.



Gross domestic product climbed 0.6 percent sequentially, following third quarter's 0.7 percent expansion. The rate came in line with the preliminary flash estimate published on January 30. 



On a yearly basis, GDP growth eased slightly to 2.7 percent from 2.8 percent in the preceding period. The annual rate also matched the previous estimate. No breakdown of data is currently available from the statistical office. 



For the whole year 2017, GDP grew 2.5 percent, the fastest in a decade. 



Largely driven by foreign demand, Germany's GDP grew 0.6 percent sequentially in the fourth quarter, but slightly slower than the 0.7 percent expansion seen in the third quarter. 



Despite a slowdown in Germany, it was the major factor for euro area growth. Spain also expanded strongly, by 0.7 percent, but slower than the preceding three month's 0.8 percent expansion. 



On the other hand, France, Dutch and Portugal posted faster growth. France's growth improved to 0.6 percent on foreign demand. 



Dutch GDP growth doubled to 0.8 percent from 0.4 percent. Portugal's growth came in at 0.7 percent, up from 0.5 percent a quarter ago. 



Italy's logged a weaker growth of 0.3 percent following third quarter's 0.4 percent expansion. 



Citing stronger cyclical momentum in Europe and better-than-expected pick-up in global economic activity and trade, the EU had raised its growth projection for the euro area to 2.3 percent in 2018 from 2.1 percent. 



Likewise, the forecast for next year was upgraded to 2 percent from 1.9 percent. 



In a separate release, Eurostat said industrial production grew for the third consecutive month in December. Industrial production rose 0.4 percent from November, when it climbed 1.3 percent. 



An acceleration in industrial production growth was not enough to prevent a slight slowdown in eurozone GDP growth in the fourth quarter, Stephen Brown, an economist at Capital Economics, said. Nevertheless, the economic outlook is bright.



Copyright RTT News/dpa-AFX
The Federal Statistical Office of Germany discloses that Germany's gross domestic product shrank by 0.1% in the second quarter.