Coming fourth in the Olympic medal table was remarkable enough. What made it all the sweeter for many Brits was beating Germany.

There is also scope for unworthy gloating in the economic Olympics. While Britain is well down the rankings, at least we are not doing as badly as Germany.

Official figures yesterday confirmed that German GDP shrank in the second quarter while its corporate sentiment has sagged to a three-year low. So much for all those German taunts about “the English patient”. But it would be dangerous to get too smug.

It is true that Germany is suffering a setback after something of an economic resurrection in recent times. Yet it may not be quite as gloomy as it looks.

For one thing, the 0.5 per cent fall in second-quarter GDP partly reflects “payback” from a boom-like 1.3 per cent expansion in the previous three months that was boosted by the distorting effect of tax changes for corporate investment.

More importantly, while there is no denying that Germany is faltering, it may prove to be less exposed than some rivals. It has avoided the excesses of runaway housing booms and personal borrowing sprees that beset other European countries such as Britain, Spain and even Denmark, where the Government had to bail out a bank at the weekend.

At the same time, the huge shake-out of corporate Germany forced by entering the euro at an overvalued exchange rate has left it leaner and better able to weather the storms. It is much too soon to write Germany off.

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