German GDP growth rate cools to 0.3% in Q2

Germany's economic growth cooled to 0.3% in the second quarter, down from 0.5% expansion in Q1, the Federal Statistical Office has announced in its final reading.

The figure was in line with analysts' expectations of a modest decline after the country posted a sharp drop in investment in Q2. Gross capital investment declined 0.9%, which accounted for a 0.2% drop in GDP. However, on a brighter note, the data showed Germany posted a budget surplus in the first half of the year, of €8.3bn or 0.6% of GDP, buoyed by its strong labor market. Exports were up 2.5% from Q1 and private consumption increased by 0.4%, the data also showed.