Germany's economy probably did not grow in the second quarter as negative net exports offset stronger domestic demand, the Bundesbank said on Monday. "Existing data, especially for the development in industry, construction, the retail sector and exports, suggest that total economic output in the second quarter of 2005 roughly remained at the level of the first quarter, when it rose strongly," the central bank said in its July monthly report.
The Bundesbank estimated capital investment, private consumption and stocks all contributed positively to growth. "However, foreign trade appears...to have made on balance a negative contribution to gross domestic product," it added.
Germany's economy expanded 1 percent in the first three months of the year, the strongest quarterly rate in four years.
Private sector economists mostly expect growth of 0.2 to 0.3 percent in the second quarter, although some, including the Munich-based Ifo institute, see a chance of contraction.
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