German Central Bank Says Economy Grew Strongly in Q2

The German economy showed robust growth in the second quarter of this year, boosted by industrial production and construction, the Bundesbank said on Monday, adding that the economy might grow more slowly after that.

“The assessment that, after the weather-related weak start to 2013, the German economy expanded strongly in the second quarter, has been confirmed by the current indicators,” the German central bank said in its monthly bulletin.

“Looking into the summer quarter, signs of a slowing down of economic growth are stronger.”

Turning into money and credit growth, the Bundesbank said that monetary data does not point to any upside inflation risks in the euro zone, and added that negative shocks could hamper credit supply and thus the economy in the peripheral countries.

“This could, as it is linked to further contraction in money and credit volumes, increase downward risks to price stability,” the Bundesbank said.

But it added that monetary policy could react to country-specific risks only if they endanger price stability in the euro zone as a whole.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza
Alfonso Esparza

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