Economic growth in Germany may slow down in the second quarter following the weather-backed growth in the first quarter, revealed the Bundesbank in its monthly report released on Monday. It also said that it expects the domestic demand to play a key role in supporting the economy in the foreseeable future.
Germany’s economy grew by 0.8 percent in the first three months of the year, the most in three years due to the unusually mild weather in the winter and higher domestic spending. The Bundesbank revealed that growth in spring will be slower due to the weather-linked boost in the first quarter, reported Reuters.
“GDP growth will nevertheless probably be relatively weak in the spring in seasonally and calendar-adjusted terms,” said Bundesbank.
It said that external shocks had increased recently due to the upheavals in Ukraine and economic risks in emerging economies, hence foreign demand will be subdued. This means the growth will be mostly backed by domestic demand.
In a separate report, Germany’s Economy Minister Sigmar Gabriel said he will initiate a policy seeking to curb exports of arms to non-EU or NATO members, in what is a radical shift from the previous government under which the exports rose.
Germany exported arms worth 1.2 billion euros ($1.6 billion) between January and April, a slight decline from the similar period last year. Exports to non-NATO or non-EU nations rose to 650 million euros, a growth of 130 million euros ($178 million). This involves 97 million worth of arms to Brunei, 29 million euros to Algeria and 31 million euros to Saudi Arabia.
Germany was ranked the third biggest arms exporter in the world from 2008 to 2012 by the Stockholm International Peace Research Institute after Russia and the United States.