German GDP contracted by 0.1% in the second quarter

Germany's economy shrank by 0.1% in the second quarter, driven by decreasing demand from the U.S. This decline followed a period of strong purchases from American importers who anticipated tariffs.

The contraction aligns with predictions and reverses the previous quarter's growth.

Franziska Palmas, a senior economist, noted that this downturn left GDP at pre-pandemic levels. She explained that the decline was "partly, but not solely," due to the shift after tariff preparations.