German economy is gaining strength – Euro-zone non – Reuters Germany

– by Rene Wagner

Brussels / Berlin (Reuters) – Booming exports and consumer spending bring the German economy going.

The gross domestic product grew from April to June by 0.4 percent the previous quarter , Despite the sluggish global economy, the sharpened crisis in Greece and a veritable wave of strikes at major corporations such as Deutsche Bahn, the result was better than the beginning of the year with 0.3 percent. However, that was not enough to entrain the euro zone: their growth slowed unexpectedly to 0.3 from 0.4, because France fell into stagnation and Italy weakened. The prospects remain subdued. The world economy is expected in the second half suffer from the turmoil in China.

“Benefiting from the weak euro, exports rose much more strongly than imports”, the Federal Statistics Office said on Friday the German growth. This cheaper goods in major markets such as the US, UK or Switzerland. “Also, the private consumption expenditure and government final consumption expenditure continued to develop positively,” it said. Because of record employment, rising wages and falling energy prices, the money is loose among consumers. Growth on the other hand was held back by weak investment. “In particular, in buildings was less invested than in the first quarter,” it said. Due to the mild winter, many construction works were completed early in the year, the demand was lacking in the spring.

“RATHER MORE STOLPERSTEINE”

Great leaps trust economists of the German economy for the time being not to. “The export growth is expected to continue so not because especially important for Germany emerging economies with their own problems to fight,” said economist Ulrike Kastens at Sal. Oppenheim. Especially China made last with weak economic data, stock market and currency turmoil negative headlines. The second largest after the United States economy in the world should no longer grow as slowly as in 2015 since a quarter century. Sales of the car maker Audi on its largest sales market China dropped by 12.5 percent, for example, in July. “The number of cyclical stumbling blocks takes rather too because from” warned the president of the Foreign Trade Association BGA, Anton Börner. “If China exports its own problems, which goes to the German export industry is not unscathed.”

Germany overturned compared with the other two major economies of the monetary union well. In France, the economy stagnated power as consumers consumed less and the companies investing only cautiously. In Italy, growth slowed down to 0.2 percent, as the industry has stagnated. Ironically, the crisis-ridden Greece hung from the big three: It recorded a plus of 0.8 percent, with probably contributed a strong holiday season. In Spain, the gross domestic product by as much as 1.0 percent.

” NODE will not break “

The prospects remain subdued. “The upward movement is slow, because in important countries such as France and Italy decelerates the correction earlier exaggerations continue,” said Commerzbank analyst Ralph Solveen. “Since thereto for the time being hardly anything will change, the node should not burst in the economy in the euro area in the coming quarters.” The EU Commission is expecting 2015 growth of 1.5 percent. For Germany, it shall reach to 1.9 percent.

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