German economy shrank in Q2 of '25 - statistics

BERLIN, Aug 22 (KUNA) -- Germany's economy, the largest in Europe, shrank by 0.3 percent in the second quarter of this year compared with the previous quarter, the Federal Statistical Office said Friday.
Citing a preliminary report at the end of July, the office, based in Wiesbaden said that the gross domestic product (GDP) contracted by 0.1 percent due to lower corporate investments in construction and machinery as well as trade tensions across the Atlantic that hit exports.
Since last summer, the United States has imposed 15 percent tariffs on European Union goods, placing German companies in a difficult position given their extensive ties to the American market.
The tariffs have inflicted Germany's economy, particularly in the automotive and chemical sectors, with knock-on effects across the wider economy. (end) anj.sar