WIESBADEN (AFX) – The German economy has vigorously picked up speed at the start. The Gross Domestic Product (GDP) grew by 0.7 percent in the first quarter compared to the previous quarter, said the Federal Statistics Office on Friday after an initial estimate. Thus Europe’s largest economy grew in the January to March period slightly stronger than expected. Economists had only expected a rise of 0.6 percent. In the final quarter of 2015, the German economy grew by 0.3 percent.
“With the strongest increase in two years, the German economy puts a turbo start out,” said expert Dirk Schlotböller the German Industry and Commerce (DIHK) data. In his estimation, the cheap oil have fueled the economy. In addition, the construction industry have until March to work longer by the mild winter in January as usual. “But one thing is clear: So many favorable factors come not soon again together”., Schlotböller said
INTERNAL ECONOMY REMAINS GROWTH DRIVER
growth impetus came mainly from the domestic market. “Households and the government increased their consumer spending at the beginning,” it said in the statement of the Federal Office. As a cause for the increased government investment applies the refugee crisis. At the beginning of the year had to be a large number of refugees housed and cared for. The necessary government spending had an impact “economically supportive,” said the Federal Ministry of Economics.
Also, private investment had a positive effect on the economy of. According to the Ministry of Economy, Germans have invested among others in new automobiles. “In particular in the automotive sector, there was a sharp rise in new registrations,” it said in the statement.
EXPERT: RECOVERY CONTINUES – BUT WITH LESS MOMENTUM
“Overall, it must be noted that the concerns about the economy, how they came up especially at the beginning of the year, have proven unfounded,” said expert Stefan Kipar of Bayerische Landesbank firmly. Also, the braking effect by the continued weak foreign trade was probably not failed worrying greatly
Overall, experts were convinced. The upturn in the German economy will continue in the further course of the year. “The coming quarters will look solid,” for example, said Thomas Gitzel, chief economist at VP Bank. However, the recovery will not be able to maintain the high pace from the start of the year. / Jkr / tos / stb