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Tuesday, June 18, 2013

German economy to slow in summer: Central bank

FRANKFURT: The German economy will slow this summer after a spring recovery, the central bank predicted in a report on Monday, citing weaker industrial orders and export data.


"In line with slightly weaker orders in April, expectations for production for the months ahead have been markedly scaled back," it said.

"The same applies for short-term export prospects." Europe's biggest economy narrowly scraped past a recession in the year's first quarter with 0.1-percent growth, after a contraction of 0.7 percent in the last quarter of 2012.

"After a weak start to the year, real gross domestic product is expected to grow strongly in the second quarter of 2013," said the Bundesbank, pointing to economic indicators for April.

For now, "the upward trend in orders since last autumn is becoming increasingly noticeable in industrial production and exports," it said in its report.

The bank also pointed out that, after an especially harsh winter, in the second quarter "the construction sector is quickly making up for the weather-related losses".

However, the report said on the July-September period that "for the summer, there are indications for a slowdown in the growth rate".

For 2013 as a whole, the bank has predicted 0.3 percent economic growth, which is expected to pick up to 1.5 percent next year.

indiatimes.com

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