Live Updates > Live Update Details
2025-07-30 16:17:59
[Germany's economy slumps! Is a demand winter and tariffs looming over Europe?] ⑴ On the evening of July 30th, Beijing time, data showed that the German economy shrank by 0.1% in the second quarter. ⑵ This contraction was in line with market expectations, reversing the 0.4% growth in the first quarter. ⑶ Germany's Federal Statistical Office noted that investment declined in the second quarter, while consumption and government spending rose compared to the previous three months. ⑷ One of the main reasons for this contraction was slowing US demand. ⑸ Previously, US importers had engaged in strong purchases for several months in anticipation of potential US tariff increases. ⑹ Last Sunday, the US and the EU reached a trade framework agreement, imposing 15% import tariffs on most EU goods, just half the initially threatened tariffs. ⑺ The agreement averted a larger trade war between the two major trading partners, which together account for nearly one-third of global trade. ⑻ In 2024, the US was Germany's largest trading partner, with bilateral goods trade totaling €253 billion. ⑼ The unexpected contraction in the German economy suggests that Trump's tariff rhetoric has had a significant impact on global supply chains and trade flows. ⑽ The market needs to be vigilant. Even if the intensity of tariffs is weakened, its lagged effect on economic activities cannot be ignored.
