EU powerhouse Germany ‘proves its staying power’ with 12th quarter of growth
The positive GDP numbers help Chancellor Angela Merkel burnish her economic credentials less than six weeks before an election
Berlin — Strong household and state spending consolidated Germany’s role as the eurozone’s growth engine in the second quarter, helping Chancellor Angela Merkel to burnish her economic credentials less than six weeks before an election. Tuesday’s data are the last major growth figures to be published before the September 24 vote, in which Merkel is seeking to win a fourth term. Merkel’s conservatives enjoy a comfortable lead over the Social Democrats (SPD), their current coalition partner: an INSA poll on Tuesday put their support at 37% to the SPD’s 25%. Yet while neither party wants another grand coalition, a fractured political landscape could make it hard to form another viable alliance. In the second quarter, Germany’s seasonally adjusted gross domestic product (GDP) was up 0.6% from the previous quarter — just below the consensus forecast of 0.7% in a Reuters poll, but still the 12th consecutive quarterly growth reading. In addition, first-quarter growth was revised up to 0.7%...
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