(MENAFN- AFP) Expanding exports and domestic consumption pushed Germany's economy -- Europe's biggest -- to grow slightly faster than expected between April and June, preliminary data showed on Friday.
With a 0.4 percent increase in calendar- and seasonally-adjusted terms, gross domestic product (GDP) grew slightly slower than the previous quarter's 0.7 percent, a statement from federal statistics office Destatis said.
That was twice as fast as analysts surveyed by Factset had predicted.
"Compared with the previous quarter, positive impulses came from the trade surplus. Preliminary estimates showed exports increased compared with the first quarter of 2016," the statisticians said.
"Private consumption spending and state consumption spending also bolstered growth," the statement went on.
Compared with the same period in 2015, the economy showed growth of 3.1 percent -- "stronger than at any time in the past five years", Destatis said.
But there were some weaker spots in the overall picture.
"Growth was slowed by weak net investment, especially in facilities and construction, where less was invested after a strong first quarter," the statisticians said.
ING Diba bank's Carsten Brzeski said "the current recovery is clearly running on its very last leg," pointing to weak investments which he argues are unlikely to return to healthy levels given the shock of the UK's vote to quite the European Union, as well as fears of a wider global slowdown.
Domestic consumption alone without investment will not be able to maintain growth indefinitely, Brzeski said.
But Holger Schmieding, an analyst at Berenberg bank, said: "Germany's economic position continues to look strong."
He pointed to "solid domestic fundamentals, a buoyant labour market, rising real incomes, a modest fiscal stimulus and excellent financing conditions," which he believes would help Germany weather the fallout from Brexit.
Friday's data are only preliminary, with a full GDP reading and detailed breakdown to be published on August 24.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.