GERMAN economy is going through in a peril time.
Germany's growth plunged in the second quarter of the year, sparking fears that Europe's largest economy is running out of steam.
Chancellor Angela Merkel oversaw Gross Domestic Product (GDP) increase by just 0.4 per cent between April and July quarter, sharply down from the 0.7 per cent recorded in the first three months of the year.
It comes after predictions this week by the German Institute for Economic Research found Brexit could wipe 0.4 per cent from the country's growth over the next eight months.
Last year's mild winter had helped German growth jump at the start of the year, but the effect had worn off by the second quarter.
Investment in construction and machinery dived, but the headline reading was saved by higher exports and strong state spending.
Germany's economic growth is expected to get even worse this year, following Britain's vote to leave the European Union (EU), experts said.
Investment needs to pick up in the country to see any meaningful growth, according to ING economist Carsten Brzeski.
He added: "Increased uncertainties after the Brexit vote, continued structural weaknesses in many Eurozone countries and a renewed global slowdown make an organic pick-up in investment rather unlikely."
President of the European Central Bank (ECB) Mario Draghi recently urged politicians to implment policies to kick-start growth across the bloc.
His comments come amid fears the central bank is running out of tools to boost growth after slashing interest rates below zero and pledging to pump a trillion euros in the economy.
It's now expected Eurozone growth for the second quarter will come in at 0.3 per cent, half the 0.6 per cent recorded at the start of 2016.
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