Germany's economy is growing at its fastest rate in three years

Photo by Shaun Botterill/Getty Images

Preliminary GDP data for Germany revealed growth of 0.6% in the June quarter, just shy of market forecasts of 0.7%.

The slight miss was still a solid print for the German economy, with annual growth increasing to 2.1% from 1.7% in Q1.

According to the Financial Times, that’s the fastest rate of annual growth since 2014.

Despite that, the euro dipped immediately after the result, perhaps due to the fact that growth was still fractionally less than expectations.

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German chancellor Angela Merkel will lead the Christian Democrat party (CDU) into next month’s elections have presided over 12 straight quarters of growth.

The unemployment rate is also at its lowest level since German reunification in 1990.

According to ForexLive, gains in Q2 economic growth were driven by domestic demand, with increases in state investment and private consumption.

Construction investment also rose while trade balance weighed on growth as imports rose more strongly than exports.

Germany’s 0.6% growth figure was the same as the broader Eurozone. The FT said France had 0.5% growth, while Spain also had its best measure in three years with a 0.9% increase.

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