Germany’s economy back on its feet with negative outlook ‘overdone’
Solid domestic demand in Germany has shielded the region from the worst effects of global trade tensions, so far
Frankfurt — Germany’s economy looks to have found its feet again after an apparent shaky start to the year, suggesting some of the worries about the outlook may have been overdone. Delivering on its role as driver of the region’s expansion once again, it recorded growth of 0.5% in the three months through June — better than forecast — and its first-quarter performance was revised higher. That keeps solid momentum in the eurozone’s largest economy, even as companies navigate persistent trade tensions. The euro rose after the report and traded at $1.1426 at 10.05am in Frankfurt. Germany’s benchmark DAX 30 was up 0.7%.
While solid domestic demand in Europe’s largest economy has shielded the region from the worst effects of global trade tensions, so far, companies are increasingly concerned about the outlook. New numbers in China hint at a mid-year rough patch for growth, and there’s also turmoil in Turkey that’s sent the lira down 40% this month and spread to other emerging marke...