German GDP powers ahead

Strong household spending, rising state expenditure and higher company investments have consolidated Germany’s role as the eurozone growth engine in the second quarter, although accelerating imports meant growth came in just below expectations.

The data, coming less than six weeks before a federal election in which chancellor Angela Merkel seeks to win a fourth term, underlines the continued strength of the German economy compared with its peers.

The Italian economy is on the mend with industrial production, exports, employment and business confidence rising but with expected annual growth of 1.2% in 2017 and 1% in each of the two following years, it will remain below the pre-crisis level of a decade ago.