Wainwright Marks Management – Germany's Economy Maintains Momentum

Wainwright Marks Management analysts say all areas of Germany's economy expanded in the period from April to June with a strong domestic performance helping to offset threats to exports from an unclear global trade outlook.

Manufacturing and state expenditure grew the most in the second quarter and both increased by 0.6 percent from the previous quarter but Wainwright Marks Management analysts say an all-time high surplus for the government sector should have resulted in a more rapid increase in government investments.

German Finance Minister Olaf Scholz stated that the record surplus would create further opportunities but that the reach of these opportunities would not be seen until the end of this year.

Recent Federal Statistics Office data, which confirmed a preliminary growth reading of 0.5 percent, emphasized the growing dependence of Germany's economy on domestic activity.

Private consumption maintained its growth streak for the sixth consecutive quarter indicating a steady drop in joblessness figures during an extended period of economic recovery.

The increase in surplus has encouraged criticism of Germany from euro zone partners for not assisting their economies by spending a greater portion of their budget surplus on investments.

Wainwright Marks Management analysts say the recent data proved that the German economy is already exhibiting a nicely balanced growth model, with all sectors expanding in the second quarter.

Some critics say that, in light of a slightly weaker export market, the German government should authorize additional tax relief for families exceeding the 10 billion euros per annum it approved in June this year.