Mubasher: Preliminary figures showed that German economy shrank during the second quarter of this year, weighed on by plunging exports, as factories grapple with waning demand abroad and trade tussles.

On a calendar-adjusted basis, Germany’s gross domestic product (GDP) fell by 0.1% in Q2-19, compared with a growth rate of 0.4% in Q1-19, the Federal Statistics Office (Destatis) said.

That sent the annual growth rate to 0.4% during the period between April and June, slower than 0.7% in the prior three-month period.

“The development of foreign trade slowed down economic growth because exports recorded a stronger quarter-on-quarter decrease than imports,” Destatis said.

Domestic demand upwardly contributed to growth, as household consumption, government spending and gross fixed capital formation rose quarter-on-quarter.

Construction output contracted during the quarter, after the sector boosted growth in the first quarter of the year after an unusually mild winter.

In response, the yield on Germany’s benchmark 10-year government bond fell to a record low of -0.623%, while the EUR/USD pair ticked up by 0.05% to $1.1177.