Export Reduction, Germany's Second Quarter Economic Contraction

Data released by the German Federal Statistical Office showed that the sharp decline in exports led to the second quarter of Germany's economic contraction. Under the influence of the US and China tariff wars and the political fallout of Britain's departure from Europe, the global economic growth slowed down, causing German manufacturers to suffer.

Reuters reported that Germany's Federal Statistics Office released data showing that Germany's gross domestic product (GDP) fell by 0.1% in the second quarter. As the pressure on the government to stimulate the economy through fiscal reform has increased, the German economic minister said that action must be taken to prevent economic contraction in the two consecutive quarters and to plunge the country into economic recession.

The signs suggest that Germany's largest economy, Germany, has been particularly vulnerable to the global slowdown as the boost from domestic demand continues to weaken for some time. The German economy has traditionally been export oriented.

Brzyski, an analyst at ING Group, said: "today's GDP report clearly shows that the gold economy of the German economy has ended ten years in ten years", said Group.

"Trade friction, global uncertainty and the struggle of the auto industry finally brought the German economy to the ground."

According to the Federal Statistics Bureau, based on calendar adjustment (calendar-adjusted), the growth rate of GDP in the second quarter of Germany dropped from 0.9% in the first quarter to 0.4%. Germany also revised its economic growth forecast for 2019 to 0.5% from 1.5% last year.