BERLIN, Aug. 14 (Xinhua) -- German economic growth has accelerated in the second quarter (Q2) of 2018 in spite of global trade tensions, official figures published on Tuesday by the Federal Statistical office show.
According to the Wiesbaden-based government agency, price- and seasonally-adjusted gross domestic product (GDP) increased at quarterly rate of 0.5 percent between April and June. Back in Q1, the German economy had recorded a slightly weaker start into the new year with a 0.4 percent expansion.
On an annual basis, price-adjusted GDP was up by 2.3 percent in Q2 compared to the same period last year. The figure marked a significant uptick from Q1 (plus 1.4 percent) when falling trade, widespread industrial action and an unusually severe flu-season exerted downward pressure on growth.
The Federal Statistical Office highlighted on Tuesday that greater household and government expenditure both made a significant contribution to the higher rate of GDP expansion measured in Q2. Enhanced domestic spending power hereby reflected the continued strength of the German labor market. There were 44.8 million officially employed workers in Germany in Q1, marking an annual increase by 1.4 percent.
Albeit at a slower pace, investment and foreign trade rose as well in Q2. The government agency hereby noted that imports had grown faster than exports during the past quarter, providing more tentative evidence of a gradual shift in the German economy towards lower trade surpluses.
Berlin has repeatedly been chastised by U.S. President Donald Trump, as well as the Washington-based International Monetary Fund (IMF) for allegedly contributing to global imbalances with its narrowly export-driven growth model.
However, figures published recently by the Federal Statistical Office showed that the volume of imports recorded in June was the highest since the beginning of trade measurements in 1950.
