German Economy Powers Ahead, but Exports Cloud Picture

Germany more than doubled its economic growth rate in the first quarter as higher state and household spending more than offset a fall in exports, the Federal Statistics Office said on Friday.

The economy grew by 0.7 percent, the highest quarterly rate since an identical reading in the first quarter of 2014.

That beat the rate of 0.6 percent registered across the euro zone, cementing Germany’s position as the bloc’s economic engine. A Reuters poll had forecast that figure for Germany alone.

Milder winter weather in Germany prompted a rise in investment on construction and capital goods, the statistics office said.

Reuters

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