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Germany’s growth slows down
Written by: PaxForex analytics dept - Friday, 27 June 2014 0 comments
German economic growth will slow in the second quarter after an unusually mild winter gave Europe's largest economy a boost in the first three months of 2014, the Finance Ministry monthly report said yesterday.
The ministry said recent data suggested Germany had put in a "very strong" performance between January and March, adding that positive impetus likely came from industrial expansion and construction activity, which benefited from the mild winter.
"Due to the weather-related surge in economic activity in the first quarter, the seasonally-adjusted figure for the following quarter will be weaker," the ministry said.
"But this technical effect should not be interpreted as a sign the economic pace slowing," the ministry said, adding that the upward trend of 'hard' economic data and optimism among firms about the future pointed to ongoing economic expansion.
Recent data has shown industrial orders and output rising while the private sector is expanding. Though the mood among investors and businesses has worsened as the Ukraine crisis wears on, it remains relatively upbeat.
The ministry said recent data gave it reason to believe the economy was experiencing an upturn that would become increasingly broad-based during the course of the year.
The government expects growth of 1.8 percent this year thanks largely to a strong increase in private consumption as consumers benefit from a strong labor market, decent wages and