German Economy Ministry Confident on 2nd Quarter Growth

The German economy is likely to have expanded significantly between April and June, helped by higher private consumption and investment in construction, but growth will be more modest in the rest of the year, the Economy Ministry said.

“The German economy grew briskly in the spring,” the ministry said on Friday in its monthly report. “After the weather dampened growth in the first quarter, there was a growth spurt in the second quarter due to catch-up effects.”

The modest underlying rate of growth in the economy should accelerate slightly in the rest of year, held back by the tough European and international environment, the ministry said.

The Bundesbank said in June that the German economy would slow down after a surge in the second quarter and expected just 0.3 percent growth for the year as a whole.

Since then, the data picture has brightened somewhat, with industrial production and orders increasing much more briskly than expected in June.

Preliminary data on second quarter gross domestic product (GDP) in Europe’s largest economy is due on August 14 – five weeks before parliamentary elections.

via Reuters

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