German GDP shrank by 0.2 percent between April and June as foreign trade and investment were weaker than expected.
In a quarter-on-quarter comparison, the increase in exports was smaller than the increase in imports, so that the balance of exports and imports had a negative effect on the German economic development. Also, capital formation, especially in construction, fell markedly, one of the probable causes being anticipatory effects due to the unusually mild winter of 2013/2014. However, both households and government consumed slightly more than in the previous quarter.
Compared with the previous year, the German economy lost momentum, too, but continued to grow. The price-adjusted GDP in the second quarter of 2014 was up by 0.8% (1.2% when calendar-adjusted) on the second quarter of 2013.
8/14/2014 7:51:28 AM