German economy continues 8-year expansion despite slowdown

German authorities will release an estimate of the country’s GDP growth for the three months till June today.

Despite concern that Germany’s eight-year-long economic growth could come to an end after it slowed to 0.3% last quarter—the slowest growth rate since September 2016—economists expect growth increased to 0.5% for the second quarter. This is close to the rate recorded during the same period last year. High consumer spending and increase in construction and industrial manufacturing likely enabled the German economy to regain strength.

The German central bank still expects annual growth to be lower this year than the last, when the country’s economy grew by 2.2%. The slowdown is being blamed on Brexit and an increase in US protectionism, which has imposed tariffs on aluminium and steel imports affecting German investment and exports.

Expect Germany to raise public spending on infrastructure and education to boost economic growth. The German cabinet has already passed a $2.8 billion bill to develop the digital infrastructure in homes, schools and businesses.