German economy "took a shot" in the second quarter

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German economy "took a shot" in the second quarter

August 24, 2018 - 09:56
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All sectors of Germany's economy showed growth in the second quarter, Reuters reports. This data gives a hope that the economy will be able to handle influences of trade war.

Photo © Gerd Altmann, CC0 1.0

All sectors of Germany's economy showed growth in the second quarter, Reuters reports. This data gives a hope that the economy will be able to handle influences of trade war.

The main factors for growth of the largest economy in Europe from April to June were state spending, investments and private consumption. As a result, growth rate was 0,5%.

Investments in construction and government spending increased by 0,6%.

Country's economy today largely depends on domestic demand as export slows down. Private consumtion has been growing for 18 months in a row. Export rose by 0,7%, while import increased by 1,7%.

According to experts' opinion, these data disproves recent critics saying that Germany depends on export too much. Steady domestic demand will further support stable development of German economy.