You are here
German Q2 growth solid but losing some momentum: Bundesbank
[FRANKFURT] German growth will remain solid in the second quarter but likely lose some of its momentum, the Bundesbank said in a monthly report on Tuesday, echoing private forecasts which have also pointed to more muted growth.
The eurozone's largest economy grew by 0.7 per cent in the first quarter, its strongest quarterly rate since the first quarter of 2014, pulling along a eurozone that is still saddled with high debt and high unemployment.
"Good conditions in the labour market, rising income expectations and stable prices are expected to keep consumer spending up," Germany's central bank said.
"However, oil prices are not expected to fall further and the strong rise in consumer purchasing power over the last two quarters is expected to recede," the bank said.
It added that it was uncertain if the strong levels of exports seen in the first quarter could be maintained.
The bank will publish new 2016-2018 projections in June.