The German economy actually decreased more than thought in the second quarter

In a preliminary report at the end of July, the Federal Statistical Office said that the gross domestic product had contracted 0.1% in April-June compared to the first quarter for the greatest European economy. This contributed to a dull exhibition for the euro zone in 20 countries.

Complete data has shown that production in manufacturing and construction industry was worse than scheduled in June and household expenditure for the quarter was also revised downwards, the office announced on Friday. The decline followed growth of 0.3% in the first quarter.

The German economy has shrunk for two years. The administration of Chancellor Friedrich Merz has made his revitalization an absolute priority since his warehouse on May 6.

He launched a program to encourage investment and create a fund of 500 billion euros ($ 582 billion) to pay money into the German crest infrastructure over the next 12 years. It is promising to reduce administrative formalities and accelerate the scanning of the country.

A group of dozens of companies last month is committed to investing at least 631 billion euros ($ 731.7 billion) in Germany over the next three years, a figure that included previously planned investments but was designed to send a signal of trust in the economy.

The economist Carsten Brzeski said: “After the sharp increase in economic activity resulting from the front-loading of American German exports in the first quarter, the economy experienced a reversal of the front loading effect, and the first complete impact of American prices (implemented in the second quarter) took effect.”

This could “take until next year before a more substantial recovery begins to take place,” he said.

A commercial agreement of the European-American Union was concluded last month but remains a work in progress.