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German economy to grow at accelerated pace in second-quarter: EconMin

Reuters  |  BERLIN 

(Reuters) - The German will continue to enjoy solid growth in the second quarter, driven by soaring private consumption and higher construction activity while net foreign trade is unlikely to add to the expansion, the Ministry said in Thursday.

Europe's biggest grew by 0.6 percent in the first quarter - faster than in the prior quarters - and analysts expect gross domestic product (GDP) to grow at least by the same rate in the April-June period.

"The German is continuing its accelerated upswing - in the second quarter too," the ministry said in its monthly

"German exports are currently benefitting from a revival of world trade. But they are likely to grow less sharply in adjusted terms than imports, which are also heading upwards," the ministry added.

This showed how the current account surplus was continuing its slow downward trend, which started in mid-2016, it said.

Industrial output has risen for five months in a row since the beginning of the year and sentiment indicators such as the closely watched Ifo index suggest that business morale has reached record highs, the ministry said.

"Consumer prices continue to rise significantly. Still, consumer spending keeps on increasing in real terms," it said, adding that employment levels were rising, albeit at a slower pace.

(Reporting by Michael Nienaber; Editing by Paul Carrel)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, July 13 2017. 13:32 IST