German Economy Powers Ahead, but Exports Cloud Picture

Germany more than doubled its economic growth rate in the first quarter as higher state and household spending more than offset a fall in exports, the Federal Statistics Office said on Friday.

The economy grew by 0.7 percent, the highest quarterly rate since an identical reading in the first quarter of 2014.

That beat the rate of 0.6 percent registered across the euro zone, cementing Germany’s position as the bloc’s economic engine. A Reuters poll had forecast that figure for Germany alone.

Milder winter weather in Germany prompted a rise in investment on construction and capital goods, the statistics office said.

Reuters

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Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.