German economy stagnates with 0% growth in Q2

ANKARA

Germany, Europe’s largest economy, stagnated with 0% growth in Q2, hit by weak trade, war-driven rising prices, and supply chain disruptions, federal statistical office Destatis announced on Friday.

On a yearly basis, however the economy grew by 1.5%.

"The economy was mainly supported by private and government consumer spending, while the trade balance dampened economic growth," it said.

On the figures, Carsten Brzeski of ING said that with stagnating GDP growth, "the economy avoided a contraction in the second quarter but only just."

"As high energy and commodity prices continue undermining purchasing power and profit margins, a technical recession in the second half looks like a done deal," he underlined.