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Germany’s economy records a third quarter without growth
Second-quarter real GDP stagnated on a quarterly basis, following mild contractions in the previous two quarters. Household consumption stabilised after declining over the 2022/23 winter, while net exports were a modest drag on growth. Leading indicators and most activity data in Germany have weakened since April-May, implying a high likelihood of a contraction in third-quarter GDP. Cooling global demand, an industrial sector downturn, ongoing structural constraints and squeezed purchasing power suggest that economic weakness will persist well into 2024. Why does it matter? Stagnant output in April-June marked a ... (full story)