German Economy Grows Faster Than Expected in Q1
German economy accelerated in the first quarter of the year than expected.
The economy grew 0.7 percent from 0.3 percent recorded in last year’s final quarter, according to the Federal Statistic Office report Friday.
Europe’s biggest economy has benefited from increasing domestic demand and record-low unemployment that is fueling consumer spending, while additional stimulus issued by European Central Bank is driving the recovery in the Euro-area.
Though Bundesbank said last month it sees slowdown in momentum in the second quarter of the year due to uncertainty in China, Germany’s third-largest trading partner. It is believed exports would slowdown in this quarter as drop in business confidence data released last month showed struggling economy.
German Industrial production and imports also slumped in the region last month, except exports that picked up.