German economic growth slowed in the second quarter but less than expected given the impact of the Middle East war, according to provisional figures released on Thursday. "It's almost too good to be true: the German economy defied the fallout from the war in the Middle East," ING bank analyst Carsten Brzeski said. "The size of the German economy is still smaller than in late 2022." "The economy still needs more reforms that improve international competitiveness, a clear plan for affordable energy and more direct incentives, e.g. tax cuts, to boost domestic demand," Brzeski said.