German economy contracts more than expected in the second quarter

Germany’s economy shrank by 0.3% in the second quarter of 2025 compared with the previous quarter, according to revised figures from the statistics office on Friday, which had initially estimated a smaller contraction of 0.1%.

Industrial production turned out to be weaker than first assumed, while household consumption was also revised downwards, showing only a 0.1% increase after new data from the services sector, including accommodation and food services in June, were taken into account.

Government spending, on the other hand, rose by 0.8% compared with the previous quarter. Investment fell sharply, declining by 1.4% during the same period.

Foreign trade failed to provide any support, with exports of goods and services slipping 0.1% from the first quarter.