Contrary to what analysts expected, Germany's economic growth outperformed modest forecasts and it looks to continue doing that as it goes into the year's second quarter. This was further strengthened by wise spending from households as well as the government.
The economy, according to RTE, showed big growth when compared to the exact same month last 2017. From figures recorded that time, the economy grew by 2 percent and that's from the period of April to June alone. Analysts had expected 2.1 percent, so that's not far off from what the forecast is.
The gross domestic product (GDP) of Germany also expanded by .5 percent each quarter. A forecast of .4 percent to .3 percent was actually predicted, and this was for the first three months of 2018 alone. This is actually a pleasant surprise for the German government, considering that the country is one of the members of the EU currently stuck in another costly trade dispute with the US.
Reuters reveals more positive news for the German traders' market. German investors showed more confidence in the economy and, thus, their morale improved. Economist Alexander Krueger of Bankhaus Lampe echoed the confidence in the economy. He said that it's an all-time high since the economic growth appears unstoppable; not even by trade disputes, proving that it's alive and way beyond good.
There will always be the voice of caution to all that had been happening, however. ZEW and German economy ministry researcher Achim Wambach preached safety, saying that confidence in the growth may be too soon. The Trump administration still has their trade tariff threats, and it remains to be seen when and how the growth will be affected.
These fears may be dispelled by facts and figures, as the German growth figures were up .4 percent the second quarter. This happened in the trade tension-pressured April to June period, where Germany posted record figures, stronger than any other country in the trade tariff-threatened Union.
This growth also marks an efficiency as the German economy moves away from relying solely on exports. The economic growth was seen as a positive sign that domestic growth is going well. This is impacted by factors like strong employment, better wages, and more infrastructure development going on in the country.
