The German economy, Europe’s biggest, grew by 0.4 percent in the second quarter of 2015, fractionally faster than in the preceding three months, but slightly short of analyst expectations.
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“The German economy continued along its positive growth path”, the statisticians said.
Preliminary second-quarter gross domestic product data is due to be published on Friday and economists are expecting it to show growth picking up to 0.5 percent after a disappointing 0.3 percent in the first.
In spite of this European markets moved upwards in early trading, following reports the Greek parliament had approved the €85bn (£60.7bn) bailout package. As a result, Germany’s year-on-year growth increased to 1.6 percent from 1.2 percent.
Germany’s economic output probably increased between April and June as foreign trade became a second pillar of support for Europe’s largest economy alongside strong private consumption, the economy ministry said on Wednesday.
Germany’s economy expanded less than forecast last quarter and France’s stagnated, highlighting the fragility of the euro area’s recovery amid uncertainty over the outlook for the global economy.
Over the past year or so, the euro has fallen to multiyear lows against the dollar.
ING DiBa economist Carsten Brzeski said that “neither Greece nor China were able to stop the German economy”.
“But available monthly data… indicate that growth was driven by exports and domestic consumption”, Brzeski said. “This is not the case”, he said.
“Germany’s fundamentals remain solid and it is in a position to look through the volatility”, said Andreas Rees, an economist at UniCredit SpA in Frankfurt.
Zalando SE, the German online fashion retailer, said on Thursday that sales will rise as much 31 percent this year and vowed to hire more staff and build warehouses to spur growth.
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But Commerzbank economist Joerg Kraemer was more sceptical. “We see downside risks in particular for our 2016 German growth forecast of 1.8 percent”, Kraemer said.
