Growth of the German economy continue with slower pace in second quarter of 2016. The final reading of GDP data confirmed that the quarterly increase amounts to 0.4%, said the German statistic institute Destatis. In first quarter the growth was 0.7%. The positive contribution to the growth of German economy comes from the balance between exports and imports. The exports are growing by 1.2% and imports decreased by 0.1% in the second quarter. In this way the trade added 0.6 percentage points to economic growth.
Domestic demand sent mixed signals. The consumption expenditure of households increased by a modest 0.2%, while government spending grew by 0.6%.
However, capital formation decreased compared to the first quarter. The fixed capital formation in machinery and equipment decreased by 2.4%, while in construction the decrease is 1.6%. Moreover, stocks declined slightly and has a negative impact on GDP growth by 0.1%
On year-on-year base the economic growth in Germany was 3.1%, which is the highest increase in five years. The experts from Destatis indicated, however, that during the period there were three more working days due to when have fallen national holidays and so it came to this high growth.
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