‘Alive and well’ – the German economy goes into higher gear

  • ‘Alive and well’ – the German economy goes into higher gear
    Independent.t. E.
    The German economy had raised more steam than expected in the second quarter, driven by higher consumer and government spending, data showed on Tuesday, suggesting Europe’s largest economy is powering ahead, despite trade-related business uncertainty.
    https://www.independent.ie/business/world/alive-and-kicking-german-economy-shifts-into-higher-gear-37214063.html
    https://www.independent.ie/business/world/article37214065.ece/cda80/AUTOCROP/h342/2015-08-09_bus_11801235_I2.JPG

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The German economy had raised more steam than expected in the second quarter, driven by higher consumer and government spending, data showed on Tuesday, suggesting Europe’s largest economy is powering ahead, despite trade-related business uncertainty.

Gross domestic product grew by 0.5 percent compared to the previous quarter, PC, Federal Bureau of statistics said.

That compared with a Reuters forecast of 0.4 PC.

The Bureau also revised up the quarterly growth in the first three months of the year to 0.4 PC from 0.3 PC.

“In spite of all pessimistic forecasts, the rise was not only alive but also kicking,” Bankhaus LAMPE economist Alexander Krueger said.

“At the moment, the rise is unlikely to be interrupted due to a global trade dispute or overheating,” said Kruger. But he added that the conflict with the United States because of tariffs clouding the Outlook for the second half of the year.

In the year the German economy grew by 2pc from April to June, taking into account calendar data showed. Analysts polled by Reuters had expected 2.1 PC.

Office of statistics reported that economic growth was mainly driven by higher household spending and increasing government consumption. Came additional impetus from investments.

Exports also grew, but was outpaced import growth, suggesting that trading volume does not contribute to overall economic growth, said the Agency.

Figures are based on a gradual transition to the German economy from the traditional export-oriented growth model to a more manageable growth driven by record-high employment, increasing wages and a booming construction.

“The German economy moved up a gear and raised the speed in the spring,” UniCredit analyst Andreas Rees, pointing to strong domestic activity and household spending.

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