Frankfurt. Germany’s economy shrank more than expected in the second quarter of 2025, according to government data, sending more worrisome signs for Europe’s largest economy.

Germany’s gross domestic product (GDP) fell 0.3 percent between April and June, according to the German federal statistics agency Destatis. Earlier in July, there was a decline of 0.1 percent.

The performance of consumption, construction and manufacturing sectors also remained below expectations, while export of goods declined by 0.6 per cent and investment in machinery and equipment declined by 1.9 per cent.

Another data released in early August showed industrial output reached its lowest level since the pandemic in June.

According to ING Bank analyst Kasrten Brzewski, germany’s export-dependent economy is finding it difficult to recover quickly due to customs duties imposed by US President Donald Trump and the increase in the rate of the euro against the US dollar.

“Germany’s economy has long been in the habit of stability and there is little chance of a significant recovery before 2026,” he said. ’

In recent years, Germany has been plagued by high production costs, rising energy prices and intense competition with China.

According to Destatis, Germany’s GDP in 2023 is 0. It had decreased by 9 percent in 2024. There was a decline of 5 percent.