Economic Buzz: Germany GDP contracts 0.3% in Q2, biggest drop in a year

Germany?s GDP shrank 0.3% in Q2 2025, deeper than the initial 0.1% estimate and marking the steepest fall since Q2 2024. Weak investment in construction, machinery, and vehicles, alongside softer exports hurt by higher US tariffs, weighed on growth. Private consumption nearly stalled, while imports rose and government spending provided only limited support.

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