Germany's central bank expects economic decline for second quarter of 2019

The German central bank (Bundesbank) is expecting that the German economy has "declined slightly" in the second quarter of 2019, according to the bank's monthly report for July, Trend reports citing Xinhua.

The decline of Germany's economy had been due to the expiration of positive special effects "after having been the main driver of growth during the winter months", the central bank explained.

Additionally, Germany's "already weak exports" would have suffered under the decline of the business with Britain as the effects of "extensive early purchases" in the run-up to Britain's withdrawal from the European Union were no longer felt.

Car sales, on the other hand, would be "normalizing" again, the Bundesbank stated. Sales in Germany's important automotive industry would have had "previously increased sharply", after car purchased had been postponed in the second half of 2018 due to "delivery problems".

Many German car makers had failed to ensure the certification of their cars according to the emissions standard introduced back in September. As a consequence, car deliveries in Germany declined strongly in the second half of 2018.

According to the German central bank, production in Germany's construction sector "presumably declined" in the second quarter of 2019 after having risen sharply in the first quarter as a result of "favorable weather conditions".

The basic economic trend would remain "weak" even without the "burdening special effects", the Bundesbank stated. This weak trend would be due to continuing decline in Germany's export oriented manufacturing sector.

"There is still no sign of a recovery in export business and industry," the Bundesbank's experts said.

Germany's gross domestic product (GDP) increased by 0.4 percent during the first quarter of 2019, the German Federal Statistical Office (Destatis) announced in May. Main growth drivers had been domestic demand and the booming construction sector.

The German government is currently expecting the GDP to grow by around 0.5 percent throughout the whole year.

Destatis is scheduled to present the first preliminary figures on the performance of Germany's economy during the second quarter of 2019 by August 14.