Germany’s powerhouse stumbles at last

THE powerhouse German economy has fallen victim to sluggish global growth, figures have revealed, in a surprise downbeat assessment of the country.

The economy grew by a mere 0.1 per cent in the second quarter of the year, well below market expectations, prompting warnings that the economic recovery in the eurozone could be in danger.

Analysts said last night that the slowdown was blamed largely on reduced household spending – the same problem cited for low growth in nations including the UK, with German families also having decided to cut outlays in uncertain times.

The decision to shut down eight of Germany’s nuclear plants following the Fukushima disaster in Japan was also named as a possible reason for the slowdown.

The figures are the first to suggest that Europe’s biggest economy, which taps into export markets around the world, is also suffering from the global downturn.

ANGUS HOWARTH