Germany: Russia sanctions, Ukraine probably contributed to Q2 contraction


  • World
  • Friday, 22 Aug 2014

Traders are pictured at their desks in front of the DAX board at the Frankfurt stock exchange August 20, 2014. REUTERS/Remote/Stringer

BERLIN (Reuters) - The German economy's surprise second-quarter contraction was probably due to Russian sanctions and confidence being eroded by the Ukraine crisis as well as the comparison with a bumper first quarter, the finance ministry said on Friday.

Europe's largest economy shrank by 0.2 percent between April and June after growing 0.7 percent in the first quarter thanks largely to an unusually mild winter, which boosted construction activity at the beginning of the year.

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