From the Federal Bureau of Statistics Europe’s largest economy, said Wednesday that due to growth in exports, government spending and private consumption; an expansion of 0.4% in GDP in Germany in the second quarter was recorded.
This German product growth failed to offset the weak performance of investment by companies.
From the statistical agency said that net foreign trade amounted to 0.6% of GDP because exports rose 1.2 percent and imports rose 0.1 percent.
Another favorable indicator was the result of the expansionary fiscal policy of the government, resulting in state spending grew 0.6% in the quarter, contributing 0.1% to GDP. Analysts conclude that “the authorities spent more to accommodate and integrate a record influx of immigrants.”
The consumer spending rose 0.2 percent in the quarter, adding 0.1% to GDP in the three months to June. Investment in plant and equipment fell 2.1% in the quarter, subtracting 0.4 percentage points from overall economic growth.
Despite the improvement in German GDP in the second quarter, weak investment, coupled with a scenario of increasing uncertainty in the markets and alarms about a banking crisis in door in Italy and likely to spread to the EU, these results are not enough to reverse the trend of the economy . in Europe post Brexit
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