German economy grew 0.6% in second quarter
Growth rate was less than expected as net trade dampened overall expansion
Workers assemble an e-Golf electric car at the Volkswagen plant in Dresden: The German economy growth rate for the first quarter has been revised up to 0.7 per cent on the quarter. Photograph: Fabrizio Bensch/Reuters
The German economy grew by less than expected in the second quarter as net trade dampened an overall expansion which was driven by strong household spending and rising state expenditure, the Federal Statistics Office said on Tuesday.
Seasonally and calender adjusted gross domestic product (GDP) in Europe’s biggest economy rose by 0.6 per cent on the quarter, the data showed. This was slightly weaker than the consensus forecast of 0.7 per cent in a Reuters poll. But the growth rate for the first quarter was revised up to 0.7 per cent on the quarter from 0.6 per cent. Unadjusted data showed the economy grew by 0.8 per cent on the year in the second quarter. This compared with a consensus forecast of 1.9 per cent. Adjusted for calendar affects, the yearly growth rate was 2.1 per cent in the April-June period.