Germany's GDP declines in Q2 2024 amid sluggish economic performance

“After the slight increase in the previous quarter, the German economy slowed down again in spring,” said Destatis president Ruth Brand in an official release.

Overall, final consumption expenditure remained stable in Q2 2024 compared with the previous quarter, recording a slight increase of 0.1 per cent on Q1 2024 after price, seasonal and calendar adjustment.

Household final consumption expenditure decreased by 0.2 per cent QoQ in Q2 2024, following an increase at the beginning of the year. Government final consumption expenditure, however, rose markedly by 1 per cent QoQ.

After the slightly positive development seen in Q1 2024, gross fixed capital formation declined significantly in Q2.

No positive contributions came from foreign trade either. In Q2 2024, total exports of goods and services were down by 0.2 per cent QoQ after price, seasonal and calendar adjustment. Such imports stagnated QoQ.

Economic performance in manufacturing fell slightly by 0.2 per cent QoQ in Q2 2024.

Q2 2024 GDP was up by a price-adjusted 0.3 per cent year on year (YoY). After price and calendar adjustment, GDP stagnated YoY.

Price-adjusted exports of goods rose by 0.4 per cent YoY in Q2 2024, while such imports fell by 3.7 per cent YoY.

The price-adjusted gross value added (GVA) in Q2 2024 was up by 0.8 per cent YoY. The price-adjusted GVA in manufacturing fell by 1.2 per cent YoY.

Overall labour productivity—price-adjusted GDP per hour worked by persons in employment—fell by 0.4 per cent YoY in Q2 2024, according to provisional calculations. Labour productivity per person in employment stagnated YoY.

Fibre2Fashion News Desk (DS)