Germany's economy expanded by a modest 0.2% in the second quarter, marking a clear slowdown from the 0.4% growth recorded in the first three months of the year.
The figures, reported by Handelsblatt, confirm that the European powerhouse continues to struggle with underlying momentum despite avoiding a technical recession.
The deceleration reinforces concerns among market participants that the recovery remains fragile.
While the positive print prevents a narrative of outright contraction, the narrowing growth rate suggests that domestic demand and industrial output are failing to gain traction.
This lack of acceleration is a key concern for investors who had hoped for a more robust rebound following the initial post-pandemic adjustments.
The data adds to a complex picture for the German economy, which has been weighed down by high energy costs, weak global trade, and structural challenges in its manufacturing sector.