BERLIN Nov 18 Germany, Europe's largest
economy, is growing solidly and its upturn will be consolidated
in the coming months, helped by domestic demand and an improved
global environment, the Bundesbank said on Monday.
The economy stagnated in the first quarter of 2013 and
though it achieved bumper growth of 0.7 percent in the second
quarter, preliminary data shows it expanded by just 0.3 percent
between July and September as exports weighed on growth.
"There's a good chance that the economic upturn in Germany
will be further cemented in the coming months," the central bank
said in its November monthly report.
While exports lack momentum and have dampened corporate
investment, many parts of the domestic economy like residential
construction and private consumption - helped by a robust labour
market and strong wage increases - are growing, it said.
The Bundesbank added that the feeble euro zone recovery,
moderate growth in important industrial countries and a slowdown
in emerging markets left shipments abroad without impetus.
Deliveries to China increased strongly during the summer
months and though exports to the Asian country are likely to
decline slightly this year, they will increase again in the
coming years, the Bundesbank said.
"But it seems improbable that they'll reach the high rate of
expansion seen in the past," the central bank warned.
As the euro zone crisis weakened demand close to home, many
German firms had looked to China as a strong alternative market
on which to offload their goods.
The Bundesbank said between 2009 and 2011 exports of German
goods to China increased from around 37 billion euros ($50
billion) to 65 billion euros but growth in 2012 almost came to a
One reason for slower growth is the Chinese government's
attempts to make the transition to an economy fired by
consumption rather than investment, the Bundesbank said.
On a seasonally adjusted basis, imports should just about
hold on to second-quarter levels between July and September, the