Source link : https://europ.info/2025/07/30/germanys-economy-shrinks-0-1-in-q2-amid-slowing-u-s-demand/
Germany’s economy slipped into contraction in the second quarter of 2024, shrinking by 0.1% as weakening demand from the United States dampened export growth. The unexpected downturn marks a setback for Europe’s largest economy, highlighting concerns over global trade tensions and slower foreign consumption. Analysts warn that the decline could signal broader challenges ahead for Germany’s industrial sector amid an uncertain international outlook.
Germany’s Economy Contracts as Export Demand from the U.S. Declines
The German economy experienced a slight contraction of 0.1% in the second quarter, signaling growing concerns about the resilience of Europe’s largest economy amid shifting global trade dynamics. Key industries, particularly manufacturing and automotive sectors, faced headwinds as export demand from the United States weakened. This slowdown in American consumption has directly impacted German exporters, who rely heavily on U.S. markets for growth. Analysts point to a combination of geopolitical uncertainties, inflationary pressures, and a cautious business outlook as contributing factors to the dip in economic activity.
Key factors influencing the downward trend include:
- Reduced orders from U.S.-based companies amid tighter monetary policies.
- Supply chain disruptions causing delays and higher costs for German manufacturers.
- Slowing consumer spending globally leading to weaker demand for German exports.
| Sector | Q2 Growth Rate | Export… |
|---|
—-
Author : Olivia Williams
Publish date : 2025-07-30 16:45:00
Copyright for syndicated content belongs to the linked Source.
—-
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8