The German economy demonstrated an upbeat start to the second quarter and this upswing is supposed to continue, even at a more moderate pace than in the first three months of 2016, as the Finance Ministry informed on Monday.
The EU’s number one economy edge up 0,7% during the January-March period. This country’s economy boasted the strongest quarterly rate for two years, as surging private consumption because growing private consumption, state spending on migrants and higher construction investments more than just compensated weak foreign trade.
The government actually expects domestic demand to power the overall economic expansion of about 1.7% this year, thus going on a par with last year’s outcome.
Higher wages, rising employment as well as low interest rates are definitely boosting the purchasing power of German consumers, as the Foreign Ministry states. Anyway, in general, conditions for private consumption is still good.