In July, the German economy continues to maintain stable development

The German Federal Ministry of Economy and Technology issued a press release to comment on the economic situation in Germany in July.

According to the press release, the current German economy continues to maintain a stable development trend. In the first quarter, German GDP regained and surpassed the level of early 2008 before the crisis broke out, making it a good start for economic development this year. Most macroeconomic research institutions have also raised their economic expectations for the current year. After experiencing unexpected high-speed economic growth in the first few months, the current economic growth has stabilized and the company's previous expectations have also declined slightly, especially as export expectations have declined. The domestic economy’s driving force for the macro economy has continued to increase.

Manufacturing is still the mainstay of German economic growth. Despite a slight decline in April, it rose again by 1.2% in May. Its main driving force is from industry. Demand for industrial products increased by 1.8% in May, which was mainly supported by large domestic orders, while foreign orders decreased.

After experiencing a sharp drop in April, the construction industry increased by 1.1% in May. After the impact of the government's economic stimulus program gradually disappeared, the construction industry orders mainly come from private consumption. From March to May, private construction industry orders increased by 19.5% year-on-year, and public construction orders increased by only 3.1%.

Private consumption began to weaken after a rapid increase in the first quarter. In April retail sales (excluding car sales) fell 2.5%, and car sales began to decline. At the same time, the good job market conditions and wage growth are expected to make consumers generally optimistic about the future.

Imports and exports continued to grow in May. Among them, imports increased by 3.7%, setting a record high. This also shows that the domestic market is very prosperous.

The employment market continued to improve. In May, the number of people employed rose by 34,000. The price increase slowed down. In June, the consumer price index rose by only 0.1% month-on-month and rose by 2.3% year-on-year. The core inflation rate is 1.5%.