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German economic growth accelerates again in Q2: central bank report

Source: Xinhua| 2018-07-23 23:41:09|Editor: Yurou
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BERLIN, July 23 (Xinhua) -- The German economy has gained renewed momentum during the second quarter (Q2) of 2018, a monthly report published on Monday by the German Central Bank (Bundesbank) said.

"Industrial growth gained a firmer footing again thanks to a recovery of exporting activity," a statement by the Frankfurt-based institution read. The central bank further pointed to a continued expansion in the construction sector as having made a positive contribution to growth in Q2.

Aside from industrial manufacturing and construction, the official report noted that private consumption played an important role in Q2 as well thanks to the "still excellent situation of the labor market." Rising wages and low unemployment meant that German consumers remained in a spending mood and that consumer price inflation was likely to continue to hover around 2 percent.

Price growth in Germany was measured at 2.1 percent in June by the Federal Statistical Office, a relatively high figure compared to previous years in the wake of the 2007/08 financial and economic crisis. The European Central Bank (ECB) sets itself an official inflation target of close to, but below 2 percent.

Although the uptick in inflation offered further evidence that the German economy has bounced back from a relatively weak start into the year in Q1, the monthly report warned on Monday that the country would still experience lower growth throughout the year than witnessed in 2017. The Central Bank currently estimates that gross domestic product (GDP) will increase by 2 percent in 2018 after having revised an earlier forecast for annual growth downward from 2.5 percent.

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