Quarterly Report Germany II/2016

The German economy started the year with a bound. In the first quarter of 2016 GDP rose 0.7 percent from the previous quarter after calendar and seasonal adjustments. Concerning Investment activity, we are expecting a moderate upturn this year. Developments in construction investments were primarily positive. Given the murky prospects for foreign trade, however, investments in equipment are likely to experience only modest growth. Net exports will probably make a negative contribution to growth.