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German economic growth seen weak despite last rebound – C.bank

German economic growth seen weak despite last rebound – C.bank

Mubasher: The recovery in the German economy at the start of the year was mainly attributed to one-off factors, while the underlying growth trend remained weak, according to Bundesbank.

In the first quarter of 2019, Europe’s leading economy grew by 0.4%, recovering for stagnation that lasted for most of the second half of the prior year.

However, the German central bank referred to one-off factors such as fiscal measures which ramped up private consumption, a bounceback in the auto industry, and less severe weather conditions that gave a push to construction activity.

“These effects, which had largely driven growth after the turn of the year, are expected to lapse or even reverse,” the Bundesbank noted in its monthly report.

Headwinds continued to persist in industry, and are even set to intensify, the bank said.

The bank expected a gradual recovery in the German growth in the second half of this year, along with a rebound in global economy.