German economy shows strong growth

15th May 2008, Comments 0 comments

The German economy appears to be avoiding a slump according to first quarter figures released this week

Frankfurt -- German economic growth surged 1.5 percent in the first quarter of 2008 compared to the final three months of last year, the Federal Statistics Office revealed Thursday.

The increase was the highest in 12 years and double what analysts predicted.

Price-adjusted gross domestic product (GDP) was up 1.8 percent on a year-to-year basis in the first quarter. Calendar adjusted, the rate was 2.6 percent, the statistics office said.

Analysts said the figures underscored a robust economy carried by a firm domestic demand and healthy exports. At present Germany is bucking the economic slowdown of other European nations, particularly the UK.

Despite the strong results German chancellor Angela Merkel has recently attracted criticism from business leaders for not deregulating the market as she seemed set to.

In the final quarter of 2007, economic growth was 0.3 percent from the previous quarter and expanded 1.6 percent year-on-year. DPA

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