German federal statistics office reports slower growth rate in Q2

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Import bills in the reviewed quarter stayed higher.

Germany's 0.6% growth figure was the same as the broader Eurozone. Though a stronger currency shows that confidence is returning to the eurozone economy, it does have the potential to weigh on exporters as it increases the price of their goods in worldwide markets, all other things being equal.

"The economy looks strong and robust", supported by domestic demand, said Andreas Rees, UniCredit's chief Germany economist. "Germany´s economic success story goes on and on and on", ING Bank analyst Carsten Brzeski said, adding there was very little reason to fear a sudden end to the current performance.

The German economy grew by 0.6 percent in the second quarter, slightly slower than expected as exports cooled, official data showed Tuesday.

The latest flash estimate published by the European Statistics Office, Eurostat, on Wednesday showed 0.6 percent growth also for the wider 28-nation European Union.

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Romanian GDP also accelerated strongly, rising at 5.9 percent on the year in the second quarter and marking a step up from the first quarter's 5.7 per cent growth.

The data, coming less than six weeks before a federal election in which Chancellor Angela Merkel seeks to win a fourth term, underlines the continued strength of the German economy compared with its peers.

Demand from households and government increased "markedly", and capital expenditure on machinery, equipment and in construction and other fixed assets rose compared with the first quarter.

Germany's economy hence lagged behind the US, which expanded at an annualized pace of 2.6% in the same period, but slightly outpaced the 2.3% growth in the 19-country euro currency zone. Outside the euro zone, Britain´s economic output grew by 0.3 percent on the quarter, edging up from 0.2 percent in the first three months.