German economy shrinks in Q2 as France stagnates

The eurozone's two largest economies both performed worse than expected in the second quarter, raising fresh fears over economic stability in the currency bloc.

German GDP contracted by 0.2% in the three months to the end of June, figures show, after growing by 0.7% in the first quarter. The drop raised fears over the outlook for the eurozone, and was compounded by data from France where the economy stood still over the same period. The figures have left commentators fearing the worst for the eurozone, which reports its own Q2 number later today. In the first quarter the eurozone grew by just 0.2%. France has now seen two quarters of zero growth. The lack of growth was weaker than many economists had expected. Germany's Federal Stati...