Tue. Apr 23rd, 2019

The Bundesbank highlights that Germany grew "moderately" during the first quarter of the year

The Bundesbank highlights that Germany grew "moderately" during the first quarter of the year

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The German economy, the largest in the Old Continent, has grown moderately in the first three months of 2019, after the recorded stagnation in the fourth quarter of 2018 and the contraction of 0.2% between July and September of last year, as indicated by the Bundesbank - the central bank of Germany - in its monthly bulletin. However, he has warned that this rebound was due to "extraordinary" factors, while the "tenuous" underlying economic trend persists.

"The German economy has grown moderately in the winter quarter of 2019," says the Bundesbank. However, the German central bank attributed this good performance to the contribution of «Exceptional factors» as the effect of good weather recorded in February in the 'boom' recorded by the construction sector.

In addition, the central bank of Germany highlights the positive evolution of domestic consumption, as reflected in the recent significant increase in retail sales, adding that "apparently (consumers) they bought cars again, something they had postponed in the fall. "

A mirage?

In this way, "without these special factors" the Bundesbank has stated that the basic trend of the German economy continues to be "restricted" by the continuous contraction of activity in the industry, where the orders received "have literally collapsed" and the confidence of the companies has deteriorated significantly.

However, the evolution of the labor market has continued for the moment to be resilient to economic deterioration. A) Yes, the unemployment rate fell slightly in March, falling to 4.9% in March, one tenth less than the previous month.

The German Government plans to Halve your official growth forecast for 2019, placing it at 0.5%, compared to 1% projected on January 30, as reported by the German press. Recently, the main German economic forecasting institutes revised their forecast to 0.8%, from the 1.9% anticipated last September.


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