15:23 | 24/07/2015 Global Economy
The German economy likely grew at a higher pace in the second quarter than in the previous three months, thanks to a strong domestic consumption and recovering foreign demand, said German central bank Bundesbank on Monday.
Berlin, Germany. Photograph: Murdo Macleod (Source: theguardian)
"The economic upturn in Germany is estimated to have strengthened in the second quarter in 2015," said the Bundesbank in its monthly report, adding that main impetus came from strong consumption and exports.
According to the central bank, good labor market situation and "obvious gains" in wages and salaries supported the strong consumption, while export business in Germany also improved significantly.
Earlier on Monday, German finance ministry also said that while domestic demand remained the main pillar of German economic growth, exports revived sharply in the second quarter, helping Europe's biggest economy stay at an upswing path.
Recent data showed that foreign trade in Germany improved despite uncertainties around the Greek crisis. In May, Germany's net exports hit its highest level since the country's reunification.
Economists expected the German economy to pick up in the second quarter following a mild growth of 0.3 percent during the first three months of 2015./.