00:00Germany's economy shrank more than expected in the second quarter,
00:04dragged down by a weaker performance from manufacturers.
00:08The drop reflects softer demand from the United States,
00:11Germany's top trading partner,
00:13after heavy stockpiling earlier in the years to avoid tariffs.
00:20GDP fell 0.3% from the previous quarter,
00:24steeper than the 0.1% decline first reported.
00:27Industrial output disappointed and investment also slid,
00:31underscoring the challenges facing Europe's largest economy.
00:35The contraction is another setback after two years of recession following Russia's war in Ukraine.
00:41The Bundesbank now warns growth may stagnate again in the third quarter.
00:46Still, there is some optimism on the horizon.
00:49Berlin's plans to sharply increase defence and infrastructure spending are expected to support growth,
00:54though the benefits may not be felt until 2026.
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