Recent Statistics show that the German economy is growing quicker than it has for two years. Growth rates have now overtaken those achieved by the UK economy. EU data shows that Germany’s economy grew by 0.7% in the first quarter of 2016. Growth is due to an increase in government and household spending. In addition rising investment on construction and capital goods offset a drag from foreign trade.

Source: FT – Italy’s economic growth picks up to 0.3%

Analysts believe that acceleration in growth may be due to the European Central Bank (ECB)’s expansionary monetary policy. Germany is rebalancing its economy towards domestic-led growth. This shift is being viewed positively because Germany had become heavily reliant on exports.

Growth prospects for the rest of the year are less optimistic because of the fear that the global economy may be sluggish

UK growth figures show that the economy grew by only 0.3% in the three months to April. This is half the rate of growth achieved towards the end of 2015. The news of a slower growth comes as figures reveal a slowdown in the UK construction industry. Building activity fell by 3.6% in March

Italy also reported positive growth figures (0.3%) reducing concerns that the Italian economy was in danger of economic meltdown due to concerns about the stability of the country’s banking system. Italy’s banks are sitting on €360bn of bad loans.Concerns remain regarding long term growth and whether the current recovery following a triple dip recession is running out of steam.