The German economy has fared better than expected in the second quarter, rising exports and strong government spending and private consumption offset weakness in investment in construction and industry.
The gross domestic product (GDP) rose 0.4% over the period April to June after growing 0.7% in premiertrimestre, according to preliminary estimates released Friday by the Federal Statistical Office. The first European economy and shows significantly better performance than that of France, where GDP stagnated in the second quarter.
The surveyed economists predicted a 0.2% growth in Germany because of a slowdown after the marked increase in GDP in the first quarter – the highest since the first quarter 2014. This was enhanced by the sweetness of winter, which boosted activity in the construction sector.
still far ahead that French German growth
Compared to the second quarter 2015, German growth reached 3.1%, the fastest pace depuiscinq years. But the surprises announced Friday are not enough to reassure some economists. They expect that the German economy will eventually suffer from low investment and the impact of the British vote in favor of leaving the United Kingdom of the European Union.
In France, the economy recorded a fifth consecutive quarter of net new jobs merchants. According to INSEE Friday, there were 24 100 new jobs (+ 0.2%) in the second quarter with a vibrant service sector. However, our growth has stagnated (0%) and hiring declined (-2.2%).