German economy grows by 0.7% in Q2

The German economy, Europe's biggest, expanded by 0.7 percent in the second quarter of 2013, slightly faster than expected, official data showed on Wednesday. Analysts had been pencilling in growth of around 0.5 percent for the period from April to June after gross domestic product (GDP) stagnated in the first quarter. Growth was driven primarily by domestic demand, with consumer spending and public expenditure both on the rise. Investment was also up on the previous quarter, the federal statistics office Destatis said in a statement. Another contributing factor was the catch-up effect following the unusually long and harsh winter, the statisticians explained. Foreign trade similarly gave the data a boost with exports rising faster than imports. Compared with the year-earlier period, GDP grew by 0.5 percent in price, seasonally and calendar adjusted terms in the second quarter, Destatis said.