The German Economy Continues Its Growth

To understand why Mrs Merkel is poised to win the election, one need look no further than Tuesday’s report on Germany’s second quarter GDP. The economy expanded at a rate of 2.1 percent on an annualized basis, a robust pace. Unemployment is at historic lows. Notoriously thrifty German consumers are spending more and businesses remain optimistic. In short, Germany’s good economic times are set to keep on rolling.

Economic growth in Germany rose by 0.6 percent in the second quarter, compared to a revised 0.7 percent in the first quarter. Year-on-year growth was 2.1 percent compared to an adjusted 2.0 percent in the first quarter.

The growth was driven by domestic demand, as household and government consumption “increased markedly,” according to the Federal Statistical Office. However, foreign trade had a “downward effect” on growth as the increase in imports outpaced exports.

With the (£) pound sterling threatening to fall below the Euro (€) in value on a one to one basis, prices of German industrial machinery, not to mention cars, will seem pricy. Those who can delay their purchases until BREXIT is sorted out might be advised to wait. Meanwhile those who have always fancied a trip to Britain will find us very good value. Alas British manufacturing so badly damaged or wiped out under Mrs Thatcher will be doing better, all though it is argued that these days there is not enough of it left, for the dramatic fall in the pound to make much impact? If the Pound drops below the Euro it will have a profound psychological impact. 

ABC Note: Angela Dorothea Merkel is a German politician and Chancellor of Germany since 2005. She has also been the leader of the Christian Democratic Union since 10 April 2000