German Economy Loses Luster as Global Tensions Bite

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Europe’s largest economy cooled sharply in the first quarter amid a drop in government spending and weak exports—a sign that a stronger euro and global tensions are beginning to leave a mark on the German economy, The Wall Street Journal reported. Germany’s annualized growth rate slowed to 1.2% from 2.5% in the fourth quarter of last year, the Federal Statistical Office said Tuesday. This means that the German economy was growing more slowly than the U.S., which registered growth of 2.3% in the same period. The data came amongst a mixed bag of a eurozone economic indicators confirming an overall slowdown at the start of the year that caused global stocks to fluctuate as traders digested the news. U.S. President Donald Trump’s threat of imposing punitive tariffs on European steel and aluminum imports earlier this year has caused alarm across the bloc. Read more. (Subscription required.)