Economic news

German Economy Keeps Growing while Election Day is Nearing

The German economy continued its rise in April-June, which creates quite favourable conditions for Angela Merkel as she will try to win a fourth term in the election.

Gross domestic product in EU’s leading economy grew by 0.6% in the second quarter. And though it’s lower than the predicted by experts in a poll by Bloomberg 0.7%, the January-March period production was reviewed upward to 0.7% by the Federal Statistics Office.

After the report came out the European currency further moved down and in the early morning was down 0.2%.

Germany is in the final stages of campaigning before the September’s election, and opinion polls demonstrate that Angela Merkel is 17 points ahead of her Social Democratic rival Martin Schulz.

Growth in the second quarter was accelerated by internal demand, according to the statistics office. People and the government were spending a lot more. Construction and technology saw investment rise compared to the first quarter as well.

Although trade held back the numbers of economic output due to the imports increasing more robustly than the exports, report said. The economy went up by 2.1 % year-on-year.

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