German Economy Minister calls for reforms after GDP slump

Published 22/08/2025, 10:26
German Economy Minister calls for reforms after GDP slump

Investing.com -- German Economy Minister Katherina Reiche issued an urgent call for economic reforms on Friday following a report from the federal statistics office showing a stronger-than-expected decline in gross domestic product during the second quarter.

"The figures illustrate the urgent need for action," Reiche said in a statement.

She emphasized that "further-reaching and bold structural reforms are essential if the German economy is to become competitive."

Germany’s economic slump worsened in the second quarter, with official data on Friday showing a sharper contraction than first reported.

The eurozone’s biggest economy contracted 0.3% quarter-on-quarter, deeper than the earlier estimate of a 0.1% drop, after expanding 0.3% in the previous quarter.

On a year-on-year basis, output edged up only 0.2% once adjusted for calendar and seasonal effects.

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