German economy grows 0.1% in Q2

By Aysu Bicer

ANKARA (AA) - German economy saw a 0.1% expansion in the second quarter of the year, compared to preliminary estimates of flat reading, official data showed on Thursday.

"Despite difficult framework conditions in the global economy, the German economy held its ground in the first two quarters of 2022," Dr. Georg Thiel, president of the Federal Statistical Office (Destatis), said in a written statement.

The economy is mainly supported by household and government final consumption expenditure.

Destatis said that consumers took the opportunity to travel and go out more after COVID-19 restrictions were lifted despite large price increases and the energy crisis.

Household final consumption expenditure increased by a total of 0.8% compared with the first quarter, while the general government raised its final consumption expenditure by 2.3%.

Gross fixed capital formation in machinery and equipment also increased in the previous quarter (+1.1%) after adjustment for price, whereas gross fixed capital formation in construction posted a marked decline (-3.4%) after the unusually good and mild winter, it noted.

On Monday, Germany’s central bank said that the probability of a recession in the German economy is increasing and inflation may reach 10% in the fall.