Germany’s economy loses momentum, decreases 0.2% in second quarter

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BERLIN – Germany’s economy contracted by 0.2 per cent in the second quarter of 2014, losing momentum after a robust first quarter which was helped by the mild winter.

The Federal Statistics Office said Thursday the figure, which was adjusted for seasonal and calendar factors, reflected that imports grew faster than exports.

The office said that “the balance of exports and imports had a negative effect on the German economic development.”

Economists’ consensus forecast as of earlier this week was a 0.1 per cent contraction.

New growth figures coming out later in the day are expected to show the crisis in Ukraine is weighing on the economy of the 18 countries that use the euro.

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