All the day’s economic and financial news, including new GDP figures from the eurozone and the latest UK unemployment and wage statistics
- Germany only grew by 0.3% in the last quarter
- ING: It’s a black eye
- Coming up: UK unemployment figures
- Pay rises may have picked up
The news that Germany’s growth rate halved in the last quarter is causing a stir.
Economist Ulrik Bie blames the drop in exports by German firms:
German GDP grew by 0.3% q/q in 1Q/2018 with the annual growth rate declining to 2.3%. This was weaker than expected. Positive growth impulse from investments – construction and machinery, with a small increase in household consumption. Negative contribution from net export pic.twitter.com/VDiD6q70Ll
Slightly downside surprise in German GDP. Everything, imho, suggests that y/y growth in the EZ as a whole is slowing towards just under 2%; consistent with q/q growth of 0.4-to-0.5% for the rest of the year.
The German economy lost a lot of momentum in Q1. GDP grew by 0.3%, in line with our view but only half the 0.6% from Q4 2017. Part of the weakness will be reversed as transitory factors fade, but we think there is more to it. Q2 will see only a bounce to 0.6% and 2018 record 2.2%
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Newsflash: Germany has suffered a growth slowdown after being hit by weak trade.
The German economy continued to grow at the beginning of the year, though at a slower pace.