Germany’s economy expands less than expected in Q2


An elderly woman wearing a face mask shops in a supermarket in Bad Honnef near Bonn, Germany, April 27, 2020. REUTERS/Wolfgang Rattay

BERLIN, July 30 (Reuters) – The German economy returned to growth in the second quarter but bounced back less strongly than expected amid supply chain bottlenecks thatare hitting industry, data showed on Friday.

Europe’s largest economy grew by 1.5% quarter on quarter, compared with a revised contraction of 2.1% in the first quarter, and by 9.2% on the year, the Federal Statistics Office said. A Reuters poll had forecast increases of 2.0% and 9.6% respectively.

Compared with the fourth quarter of 2019, the last pre-pandemic period, gross domestic product (GDP) was still down 3.4%, the Statistics Office said.

“Growth is decent, but it could have been stronger if it wasn’t for shortages of materials,” VP Bank Group Chief Economist Thomas Gitzel said.

Supply chain worries and rising coronavirus infections have dampened the…

Read more…