German Growth Softer In Q1

Forex News

German Q1 economic growth data showed a mild slack, which was caused by a soft trade, the flu epidemic, an unusually high number of strikes and an above-average number of holidays. The economy rose 0.3% - the slowest rate in almost two years. The forecast suggested a growth of 0.4%. Nonetheless, numbers pointed at a fifteenth consecutive quarter of expansion in Germany.

Economists claim it was just a blip and soon we’ll see an upward movement in German growth. For the whole 2018, the government projects growth of 2.3%. Andreas Scheuerle (DekaBank analyst) said: "Is it a pause or a fundamental shift? For us the answer is clear: It's just a blip. However, this should not hide the fact that risks to the economic outlook have risen not least due to the neo-protectionist aspirations and sanctions policy of the U.S. government".

Federal Statistics Office stated: "Investment rose sharply, with significantly more investment in construction, but also in equipment”. The Office also noted that household spending has slightly increased. Annually, German economy rose by a calendar-adjusted 2.3% in Q1. Full-year Gross Domestic Product growth was at 2.2% last year. In a calendar-adjusted terms, the rate was at 2.5%, marking the 6 year maximum.