Germany’s economy has grown at a faster rate in the first quarter of 2016, powered by stronger industrial output and higher private consumption, the German finance ministry said.
“The German economy had a dynamic start,” the ministry said. “The labor-market situation remains positive, overall economic conditions are favorable and consumption has likely been a main contributor to growth during the first quarter.”
The ministry’s statements indicate that Germany’s economy has probably risen by more than 0.3% from the fourth quarter of 2015 when it grew 0.3% from the prior three months.
However, the ministry said that German exports contracted during the past months due to a slowdown in the global economy. Moreover, German companies’ business expectations deteriorated.
The Ifo business climate index for Germany dropped to 105.7 in February from 107.3 last month. This could be a sign of a slowdown in Germany, Europe's economic locomotive.
Still, the German finance ministry expects gross domestic product growth to accelerate. In its annual economic report, the government said it expected GDP to expand by 1.7% in 2016, the same as in 2015.
