German economy grew 0.6pc in Q2 on strong domestic demand

Reuters | Published: August 15, 2017 08:05:59 | Updated: October 24, 2017 13:37:30


The German economy grew by less than expected in the second quarter as net trade dampened an overall expansion which was driven by strong household spending.

The rising state expenditure also affected the slow growth, the Federal Statistics Office said on Tuesday.

Seasonally and calendar adjusted Gross Domestic Product (GDP) in Europe's biggest economy rose by 0.6 per cent on the quarter, the data showed. 

This was slightly weaker than the consensus forecast of 0.7 per cent in a Reuters poll.

But the growth rate for the first quarter was revised up to 0.7 per cent on the quarter from 0.6 per cent.

Unadjusted data showed the economy grew by 0.8 per cent on the year in the second quarter. This compared with a consensus forecast of 1.9 per cent. 

Adjusted for calendar affects, the yearly growth rate was 2.1 per cent in the April-June period, according to Reuters.

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