German Economy is Growing Again, But Less Strongly Than Expected

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The German economy showed growth again in the second quarter, after contracting in the first quarter.

 

But the progress of the eurozone’s largest economy turned out to be much lower than average economists had expected, according to new figures from the German statistical office.

According to a preliminary estimate, German gross domestic product (GDP) increased by 1.5 percent compared to a quarter earlier. Economists had expected a plus of 2 percent.

According to an adjusted figure, there was a contraction of 2.1 percent in the first quarter. That also means a minor setback because an earlier estimate still assumed a decline of 1.8 percent.

Like many other countries, Germany benefited from an easing of the corona measures. That led to an economic revival.

But at the same time, Germany’s sizeable industry has struggled with supply chain problems, such as chip shortages and supply problems in the wake of the Suez Canal blockade and other disruptions to international shipping.

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