The German government is predicting the economy to slow in the coming months after expanding rapidly in the second quarter. The slowdown isn’t unusual, Berlin says, in view of current global economic developments.
German economic growth was expected to normalize in the second half of 2013, after an 0.7 percent expansion rate between April and June, the government said in its latest economic report published Tuesday.
The slowdown was primarily the result of catch-up effects tapering off in the coming months, the report added.
In the second quarter of 2013, the German economy accelerated because of a backlog of orders in the wake of a long winter. Moreover, huge floods in Germany and Central Europe this spring interrupted production in some sectors.
The German economy would however, remain on a path of growth, the government noted.
"The robust growth dynamic in the domestic economy will become the main driver of growth in the second half of this year," the government reported.
Just ahead of a general election, the government of Chancellor Angela Merkel has pinned its hopes primarily on German consumers who have shown themselves to be in positive moods regarding the economy and want to continue spending.
On a global scale, Berlin considers economic development as fragile and riddled with uncertainty about the conflict in Syria and compounding economic woes in emerging economies. Moreover, lingering doubts about the recovery in the crisis-hit eurozone would continue to weigh on the German economy, the government reported.
uhe/mkg (Reuters, dpa)