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Carsten Brzeski, Chief Economist at ING, notes that the German economy grew by 0.5% QoQ in the second quarter, from a slightly upwardly revised 0.4% in 1Q.

Key Quotes

“On the year, GDP growth came in at 2.3% or 2.0% when adjusted for working days.”

“The growth components will only be released at the end of the month but available monthly data, as well as the statistical agency’s press release, suggest that private consumption, government consumption and investments were the main growth drivers in the second quarter. Net exports were a small drag.”

“With economic growth in 34 out of the last 37 quarters, the German economy remains on track for a golden decade.”

“Looking ahead, challenges for the German economy are likely to increase rather than decrease, both from the outside and within. As regards external risks and challenges, trade tensions could easily return, despite some recent relief.”

“As regards the domestic side, an increasingly complicated political landscape, too few new investments and structural reforms and supply-side constraints in the manufacturing sector are risks, challenges but also opportunities.”

“All in all, the German economy has shown an impressive growth performance in the second quarter, defying negative sentiment effects stemming from ongoing trade tensions.”