BERLIN (Reuters) – Germany’s economy stagnated in the second quarter from the previous quarter after slipping into recession over the winter, the Federal Statistical Office confirmed in a detailed estimate on Friday.
Germany’s gross domestic product (GDP) was stable over the period compared to the previous quarter in seasonally adjusted data, in line with the first estimate and expectations.
Year-on-year, GDP contracted by 0.2%, in line with the first estimate.
GDP in the eurozone’s largest economy contracted 0.4% in the fourth quarter of 2022 sequentially, then 0.1% in the first quarter of this year, marking Germany’s entry into recession .
In the second quarter, household consumption spending was flat compared with the first quarter and government spending rose 0.1%, data released on Friday showed.
Capital investment grew moderately while exports fell 1.1%.
The Bundesbank expects the German economy to stagnate again in the third quarter, according to its monthly report released on Monday.
The resilience of the labor market, wage increases and falling inflation should support private consumption but industrial production should remain weak due to the slowdown in foreign demand, estimated the German central bank.
(Written by Maria Martinez, Blandine Hénault for the , edited by Bertrand Boucey)
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