Economic recovery in Germany

Germany’s economy probably grew more in the second quarter than first reported. this is probably a stronger recovery in the second half of the year. this improvement benefits  a recovery in the construction sector in the second quarter after a slowdown during the winter caused by weather conditions.

Its is predicted that the rise of activity in the industry should also contribute positively to the growth of gross domestic product in the second quarter. The economy grew 0.2 % over the first three months of the year.

Given the upward trend of demand in the industry and the climate of optimism in business , economic recovery should strengthen in the second half of the year,  The recent positive developments should not however hide the fact that on the basis of significant indicators , levels before the crisis have not yet been found and production is still below recommended capacity.

Germany has emerged from its worst recession since the post -war period in the second quarter of 2009 and published the latest indicators point to an acceleration of the pace of recovery. The German trade with the rest of the world rose sharply in May while industrial production rose more than expected.

The Department estimates that production should continue to increase in coming months , benefiting from Germany ’s demand for capital goods in the context of a recovery in global demand, particularly in emerging Asian economies. The prospect of a further rise in exports is good,  the increase in imports and domestic orders also suggest a recovery in domestic demand.

Household demand is probably remained sluggish in the second quarter but is expected to resume later this year thanks to the recovery on the labor market and tax cuts for households implemented since the beginning of the year.