German GDP Growth Beats Expectations

(RTTNews) - The German economy logged a stronger-than-expected growth in the second quarter on robust exports, official data revealed Thursday.

Gross domestic product logged a quarterly growth of 0.2 percent in the second quarter after expanding by revised 0.4 percent in the first quarter, Destatis reported. GDP was forecast to expand 0.1 percent.

According to provisional data, exports expanded from the first quarter. Final consumption expenditure showed a subdued trend, while capital formation declined in the second quarter.

Calendar-adjusted GDP grew strongly by 0.9 percent on a yearly basis, while growth was expected to slow to 0.6 percent from revised 0.7 percent in the first quarter. Price-adjusted GDP growth rose slightly to 0.9 percent from 0.8 percent in the prior period. Detailed results for the second quarter GDP is scheduled for August 25.

ING economist Carsten Brzeski said today's GDP data suggests that the German economy defied a rather depressed mood and fears related to the war in the Middle East and soaring energy prices.

The economist observed that the longer-term outlook for the German economy will still be driven by fiscal stimulus and investments in defence and infrastructure, as well as the ability to translate recent reform plans into real and tangible action.