Strong quarterly exports highlight China risks to German growth

Frankfurt

GERMANY'S economic growth was led by exports last quarter, highlighting the risks to Europe's powerhouse as a slowdown in China threatens to curb global trade.

A breakdown of German gross domestic product showed overseas sales climbed 2.2 per cent in the three months through June, according to data on Tuesday from the Federal Statistics Office in Wiesbaden.

Private consumption rose 0.2 per cent, while capital investment shrank 0.4 per cent. The economy expanded 0.4 per cent, matching an Aug 14 estimate.

Germany faces the risk that exports will slow as China, the world's second-biggest economy and Germany's third-biggest trading partner, cools further.

More than US$5 trillion has been wiped off world equity markets since China unexpectedly devalued the yuan on Aug 11, fuelling concern that its slowdown is worse than anticipated, and German…