Financial Times FT.com

GDP cut holds up German recovery

By Bertrand Benoit in Berlin

Published: August 5 2008 12:37 | Last updated: August 5 2008 20:13

The German economy unexpectedly contracted by about 1 per cent in the second quarter, it emerged on Tuesday, the clearest sign to date that the robust recovery in Europe’s largest economy is coming to an end.

News of the contraction – twice as fast as most economists had forecast – came in a report by the Süddeutsche Zeitung newspaper on economic figures due to be officially released next week.

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