The Strategist

German Economy Recovers

08/14/2015 - 17:18

The German economy in the second quarter of 2015 regained the pace of growth thanks to booming exports. Gross national product rose from April to June by 0.4 per cent compared with the previous quarter, reported on Friday, August 14, the Federal Statistical Office. The surveyed economists expected on average an increase of 0.5 per cent, despite the fact that the beginning of the year did not exceed expectations of 0.3 percent, reports Reuters. German government expects growth rate of 1.8 percent for the current and next year. In 2014, the figure was 1.6 percent.

Positive impulses are mainly triggered by foreign trade. "According to preliminary calculations, the weak euro encouraged exports to grow much stronger than imports. Consumer spending of private individuals, as well as the state,  are positively developing," - say the statistics. Due to the record levels of employment, wage growth and low inflation, consumers can freely dispose of the money. The growth of the economy was still hampered by weak gross investment. "In the first quarter, especially little has been invested in construction", - stated in a statistical report.

In the spring of indicators in Germany were better than in France, despite a wave of strikes, because that for a long time not working railway, post office, kindergarten, and the country's largest airline Lufthansa. Economic growth in France in the spring months to everyone's surprise slowed, despite the fact that at the beginning of the year the national economy was a plus. Greece has also announced strong growth (0.8 percent), which also contributed to a good tourist season.