Germany’s central bank says the economy apparently returned to growth in the 2nd quarter #Germanys #central #bank #economy #apparently #returned #growth #2nd #quarter

BERLIN (AP) — The German economy appears to have returned to slight growth in the April-June period after shrinking for two consecutive quarters, the country’s central bank said Monday.

Germany’s national statistics office said in late May that Europe’s biggest economy contracted by 0.3% in the first three months of this year, marking the second consecutive decline that is one definition of a recession. Gross domestic product declined by 0.5% in last year’s fourth quarter.

In its monthly report, the Bundesbank said economic output appears to have “increased slightly” in the second quarter, without quantifying the expected gain.

Chinese Foreign Ministry spokesperson Wang Wenbin speaks during the daily briefing in Beijing, Friday, July 14, 2023. China on Friday criticized a German government call for reducing dependency on Chinese products and reducing other potentially unstable factors in bilateral relations, calling it a form of protectionism. (AP Photo/Liu Zheng)

China has criticized a German government call for reducing dependency on Chinese products as a form of protectionism.

German Chancellor Olaf Scholz speaks during his annual summer press conference in Berlin, Germany, Friday, July 14, 2023. (AP Photo/Markus Schreiber)

German Chancellor Olaf Scholz expressed optimism that support for a far-right party that’s been surging in the polls lately will shrink to previous levels again by the time of the next national election in 2025.

German Chancellor Olaf Scholz attends the cabinet meeting of the German government at the chancellery in Berlin, Germany, Thursday, July 13, 2023. (AP Photo/Markus Schreiber)

The German government has presented a long-awaited strategy for relations with China that points to a “systemic rivalry” with the Asian power and a need to reduce risks of economic dependency, but highlights Berlin’s desire to work with Beijing on challenges such as climate change and maintain trade

FILE - In this picture provided by Swedish Coast Guard, a leak from Nord Stream 2 is seen, on Sept. 28, 2022. Investigators found traces of subsea explosives in samples taken from a boat that has been one aspect of a probe into the sabotage of the Nord Stream gas pipelines under the Baltic Sea last year, European diplomats have told the U.N. Security Council. (Swedish Coast Guard via AP, File)

Investigators found traces of undersea explosives in samples taken from a yacht that was searched as part of a probe into last year’s attacks on the Nord Stream gas pipelines in the Baltic Sea.

It said private consumption apparently stabilized, thanks to a solid labor market, pay increases and the lack of a further significant increase in inflation. It added that supply bottlenecks declined, which together with a solid cushion of orders prevented a worse showing in the industry and construction sectors.

The central bank did, however, point to declining demand from foreign customers, higher costs for financing investments at home and a decline in business confidence. It said the economic recovery over the rest of this year could be “somewhat more hesitant” than it forecast last month.

A month ago, the Bundesbank forecast that Germany’s GDP would shrink by 0.3% this year before recovering to grow by 1.2% next year and 1.3% in 2025.

The national statistics office is due to release preliminary second-quarter GDP figures on July 31.

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