German Preliminary GDP contracts 0.1% QoQ in Q2 vs. 0.1% growth expected

• German GDP falls 0.1% QoQ in Q2 vs. 0.1% forecast.
• Annual German GDP contracts 0.1% in Q2 vs. 0% estimates.
• EUR/USD shrugs off the downbeat German Q2 GDP report.

The German economy contracted by 0.1% over the quarter in the second quarter of 2024 after growing 0.2% in the first quarter, the preliminary data published by Destatis showed on Tuesday. The data missed the expected 0.1% increase.

Meanwhile, the annual GDP rate declined by 0.1% in Q2, compared with a 0.2% contraction in Q1 and the 0% forecast.

EUR/USD reaction to the German GDP data

EUR/USD ignores the German GDP contraction, adding 0.04% on the day to trade at 1.0825, at the time of writing. The pair awaits the Eurozone Preliminary GDP and Germany’s inflation data for a fresh directional impetus.