The underlying trend for the German economy remains weak, despite an economic recovery in the first quarter. The German central bank writes this in its monthly report.
In the first three months of this year, Germany’s economy grew by 0.4 percent on a quarterly basis, following a stagnation in the previous period. According to the Bundesbank, this revival was largely due to one-off factors such as measures to boost private consumption and the mild winter weather that gave the construction sector a boost.
The Bundesbank therefore thinks that in the second quarter the economy will not be able to keep up with the growth rate. In addition, Europe’s largest economy continues to suffer from global trade tensions.