German GDP growth slows sharply
16 Aug 2011
The GDP growth of Germany, Europe's largest economy, slowed sharply in the second quarter, dropping below the pre-crisis levels, after an extraordinarily strong first quarter, dealing a further, unexpected blow to eurozone prospects.
The economy grew by just 0.1 per cent in the quarter compared to 1.3 per cent recorded in the first three months of the year, according to provisional figures from the Federal Statistics Office, Destatis, on Tuesday
"The dynamics of the German economy have cooled considerably after a racy start to the year," Destatis said.
Data for the first quarter were also revised down to show a rise of 1.3 per cent down from the 1.5 per cent originally reported. Experts had estimated 1.5 per cent growth in the first quarter.
On a yearly basis, GDP grew by 2.7 per cent. Germany had been driving the economic recovery in the eurozone.
Commentators say, the weak GDP data of Germany will cast a major concern about the strength of the eurozone economy, particularly in the light a weak April and June growth reported by France.
