Germany's Central Bank: Germany's economy is likely to stagnate in the second quarter.

On July 16, Jin10 reported that the German Central Bank stated that after an unexpectedly strong expansion at the beginning of this year, the German economy may fail to achieve growth in the second quarter. The Central Bank noted in its monthly report released on Wednesday that "the German economy may stagnate in the second quarter," as the earlier overdrawn growth effects are fading. The report also indicated that the underlying trend of the economy remains "generally weak." Meanwhile, it warned that U.S. President Trump recently threatened to impose a 30% tariff, which would represent "a considerable economic downside risk." The German Central Bank also pointed out in the report that the recent improvement in sentiment indicators may partly stem from market hopes for more expansionary fiscal policy. However, the boost from such policies to economic performance is expected to manifest with a lag. At the same time, it added that in the short term, the German export sector will face additional resistance from U.S. tariff policies.