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German Economy Shrinks Unexpectedly

Germany's economy contracted unexpectedly in the second quarter largely due to weak investment, while France and Spain fared better than expected and Italy kept growing.

Gross domestic product shrank 0.1 percent on a quarterly basis in the second quarter, reversing the first quarter's 0.2 percent expansion, preliminary data from Destatis showed on Tuesday.

The largest euro area economy was expected to log a marginal 0.1 percent growth.

On a yearly basis, GDP shrank by calendar-adjusted 0.1 percent, the same pace of fall as reported in the first quarter. At the same time, price-adjusted GDP posted a 0.3 percent rise, following first quarter's 0.8 percent contraction.

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by Renju Jaya

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