German’s Strong Economic Upswing Despite Weak Growth in Q1, says Finance Ministry

Germany’s economy had a strong growth amid weak data from the largest economy in Europe earlier in 2018, according to the finance ministry on Tuesday. Moreover, economic output expanded by 0.3 percent in Q1 after the 0.6 percent growth in the last quarter of 2017. The finance ministry also mentioned that the downturn was caused by temporary factors such as ill-health conditions and strikes that affect industrial output alongside the above-average number of public holidays during the quarter.

In addition to it, the ministry stated that industrial orders continued to be at an extremely high level and that export activity at German companies could take advantage of the strong development of the world economy.

Reportedly, the combination of moderate inflation, agreed raise in pensions, robust labor market and wage hikes led to the possible solid income development and continuous support in private consumption. The government of Germany believes that the economy will grow by 2.3 percent this year.