German economy surges 2.2% in quarter

Germany on Friday reasserted itself as the economic growth engine of the eurozone, after gross domestic product expanded at a stellar 2.2 percent rate in the second quarter compared with the previous three months.

The growth spurt experienced by Germany is partly due to one-off factors, such as pent-up demand from the winter season and the earlier economic recovery in its Asian and American export markets.

With consumer confidence still relatively low in Europe, there has been little sign so far of a pick up in domestic demand, which economists are looking for as a signal of a sustained recovery. But appetite for consumption is likely to be curtailed by fiscal tightening measures being unveiled in most eurozone member states.