Germany: The end of a golden decade - ING

Analysts at ING are out with their afterthoughts on the German Q2 GDP release after the economy shrank by 0.1% QoQ in the second quarter.

Key Quotes:

“The available monthly data and the press release of the Statistical Agency suggest that private and government consumption were slightly up but trade and the construction sector were a drag on growth.

Today’s GDP report definitely marks the end of a golden decade for the German economy.

Since the end of the 2008/09 recession, the economy has grown by an average of 0.5% QoQ every quarter. In fact, the economy grew in 35 out of the last 40 quarters.

However, under the surface of these impressive headline numbers, a worrisome trend has emerged. Since 3Q 2018, the economy has been in a de facto stagnation, with quarterly GDP growth at an average of zero percent.”