German economy recovering, investment clouded: Bundesbank
FRANKFURT (AFP) - The Bundesbank forecast on Monday that the German economy, Europe's biggest, will return to "normal, steady growth" in the second half of 2013, but sounded cautious about investment.
"In the second half of 2013, economic growth in Germany is likely to return to normal and steady rates," the German central bank wrote in its August monthly report.
Last week, official statistics showed that German gross domestic product (GDP) expanded by a stronger-than-expected 0.7 per cent in the second quarter following zero growth in the first quarter.
The data indicated that growth was driven mainly by domestic demand, with consumer spending and public expenditure both on the rise and investment was also up on the previous quarter.