German economy grew 1.6% in Q2, revised upwards | Economic news


BERLIN (AP) – The German economy grew 1.6% between April and June compared to the previous quarter, a slightly better performance than initially reported, according to official statistics on Tuesday.

This gain follows a drop of 2% in the first quarter, said the Federal Statistical Office. In preliminary figures at the end of July, it had announced growth of 1.5% in the second quarter after a decline of 2.1% in the first quarter.

Those numbers fell short of the 2% gain economists had predicted for Europe’s largest economy. The second quarter of this year saw coronavirus infections flare up again and then drop to a very low level, prompting authorities to ease many restrictions as the country’s vaccination campaign gathered pace.

At the same time, however, the economy has been hit by supply chain issues, including disruptions caused by a ship blocking the Suez Canal and delays in the production and delivery of microchips. Despite growth in the second quarter, gross domestic product was still 3.3% lower than in the fourth quarter of 2019, the last before the pandemic hit Europe.

Germany’s central bank, the Bundesbank, said in its monthly report on Monday that it expects the economy to grow “considerably stronger” over the summer due to the easing of pandemic restrictions. .

Political cartoons about world leaders

Political cartoons

Copyright 2021 The Associated press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


About Author

Leave A Reply