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DIW: growth in Germany will recover in the II quarter

GERMANY (OBSERVATORY) –¬†Economic growth in Germany will recover in the II quarter after a small respite at the beginning of the year, the economic institute DIW said on Thursday.

Industrial production fell in February, which is why some analysts predicted the end of the eight-year boom in Germany, but DIW said it was simply a slowdown in which the flu epidemic, strikes and the excess of the average number of holidays are to blame.

It is expected that the growth of Germany’s gross domestic product (GDP) will slow to 0.4% in the I quarter after an increase of 0.6% in the last quarter of 2017, the institute said.

“The German economy is losing momentum,” said DIW economist Ferdinand Fichtner.

But given order books, companies are likely to take advantage of a relatively weak period in the coming months and increase overall economic growth, which, according to DIW, will reach 0.7% in the second quarter.

“The German economy will continue to grow, because it enjoys a strong global demand,” said economist DIW Simon Junker.

His optimism was reflected in the German government, whose representatives said that the economy remains lively, despite a slight decline in the growth forecast this year.