German economy unlikely to keep growth pace in Q2

The German economy is likely to lose some steam in the second quarter after it posted a solid growth rate in the first three months of the year, the Bundesbank said on Monday.

Germany’s spluttering economy returned to growth in the first quarter as consumers spent more freely and construction activity picked up helped by mild winter weather, but the outlook remains clouded by trade disputes.

Gross domestic product (GDP) rose 0.4 percent quarter-on-quarter and 0.7 percent year-on-year calendar-adjusted, preliminary figures from the Statistics Office showed Wednesday.

The Bundesbank said in its monthly report that the rebound in the first quarter was driven by “several special factors” which means the economy would struggle to keep its growth pace in the April-June period.