German economy contracts by revised 0.3% in Q2, more than expected

German economic output slowed more than expected in the second quarter, the country's statistical office said on Friday, with gross domestic product (GDP) down by 0.3% compared to the previous quarter.

It comes after preliminary data released last month suggested that GDP contracted by 0.1% between April and June.

After the German economy shrank in both 2023 and 2024, the revised quarterly decline will further increase pressure on Chancellor Friedrich Merz's government to turn the economy around.

The second quarter drop comes following an unexpected minor rebound at the start of the year, which the office, also known as Destatis, revised down to 0.3% from 0.4%.

Experts mainly attributed the first quarter growth to anticipatory effects due to plans by US President Donald Trump to impose hefty tariffs on the European Union.

Separate data by Destatis also released Friday showed that government spending exceeded revenues in the first half of 2025.

In relation to total economic output, however, the deficit of the federal government, federal states, municipalities and social security was a comparatively low 1.3%, according to the preliminary figures.