German economy grows 0.3% in Q2, on way out of recession

BERLIN. August 13. KAZINFORM  The German economy saw a 0.3 percent growth in the second quarter of this year, signaling an end to the country's worst recession since World War II, the Federal Statistical Office (Destatis) said on Thursday.

Economists had predicted a further shrinkage of about 0.2 percent for the second quarter after the economy contracted a record 3.5 percent in the first three months of 2009.

Destatis said household and government spending, construction and net trade exerted a positive impact on the GDP growth.
The unexpected growth in the second quarter made some analysts believe the recession may come to an end.

"The recession appears to have ended," said Commerzbank chief economist Joerg Kraemer when commenting on the newly released data, adding: "Economic data should strengthen substantially in the coming months."

Munich-based Allianz, Europe's biggest insurer, predicted on July 22 that the German economy will expand 2.3 percent in both the third and fourth quarters.

Deputy Economy Minister Walther Otremba has hinted that the government may revise its forecasts for a 6 percent contraction this year. "We're pretty safe on the downside and it's quite possible that we'll do somewhat better in the end," Otremba said.

But some analysts were cool toward the news, citing rising unemployment which reached 8.2 percent in July from 8.1 percent in June,  Kazinform refers to Xinhuanet.

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