Germany Economy Shrinks In 2Q

The Associated Press reports that Germany, Europe’s biggest economy contracted by 0.5% in the April-June period, the country’s Federal Statistical Office said.  It was the first decline since the third quarter of 2004.  The decline was less sharp than the 0.8% decline economists had predicted.  The government said it expects a full-year economic growth of 1.7%.

The German economy was widely expected to have slowed significantly in the second quarter amid worries over an economic slowdown across Europe.  Recent data have showed a persistent decline in industrial orders, while indexes of business, investor and consumer confidence in the country have been sliding.

Despite the quarter-on-quarter drop, the report showed that their gross domestic product grew by 3.1% compared with last year’s second quarter, or 1.7% in calendar-adjusted terms, since the period had more working days this year.