Home Economy German economy on track for stronger growth in Q3 – ministry

German economy on track for stronger growth in Q3 – ministry

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BERLIN, Aug 20 (Reuters) – The German economy is on track for a lasting, probably stronger recovery in the third quarter driven by lively domestic demand after gross domestic product expanded by 1.5% on the quarter from April to June, the finance ministry said on Friday.

A third wave of coronavirus infections and a longer-than-expected lockdown caused the economy, Europe’s largest, to shrink by 2.1% in the first three months of the year compared to the previous quarter.

The finance ministry said in its monthly report that sentiment surveys and forward-looking indicators such as truck toll mileage pointed to “unbroken optimism” among businesses and high activity in the economy over the summer months.

The re-opening of the economy and falling COVID-19 cases in early summer have pushed up household spending which translated into booming retail sales in May and June, it said.

The economic recovery has also lifted tax revenues, though accumulated tax revenues…

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