Germany’s economic growth misses expectations in Q2

According to media reports, data from Germany’s Federal Statistics Office showed that the country’s economy grew at a slightly slower pace than expected in the second quarter of 2017.

Domestic demand was boosted by increased households and government spending while capital formation contributed to the growth. On the other hand, foreign trade steps forward as a downward effect on growth as imports grew more than exports on a quarterly basis.

Gross domestic product grew 0.6% on quarter, missing stable expectations calling for 0.7%. On an annualized basis, Germany’s GDP increased by 2.5% while economist’s forecasts were calling for a yearly growth of 2.8%. Europe’s largest economy hence lagged behind the US, which posted a yearly growth of 2.6% over the same period.