Economics

German Economy Stumbles as Europe Suffers Setback in Growth

  • Portuguese, Dutch, German GDP all fall short of forecasts
  • ECB stresses temporary nature of weaker euro-area expansion
Germany will likely return to above-trend growth later this year, says Berenberg’s Holger Schmieding.Source: Bloomberg
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Economic growth slowed across Europe at the start of the year, with Germany seeing its pace of expansion cut in half amid weaker trade.

The 0.3 percent increase in Europe’s largest economy was softer than forecast and the weakest in more than a year. Dutch and Portuguese growth also cooled more than expected in the first quarter, while a similar trend was seen across central and eastern Europe.