International

German 2nd Qtr GDP Grew 2.2%, Boosting Euro Zone

German worker

hide captionA German worker on an assembly line for solar energy panels in Freiberg, Germany, in July  2010.

Matthias Rietschel/DAPD

Bucking the trend of mostly bad economic news recently, Germany saw its economy grow by 2.2 percent in the second quarter, according to the European Union.

That boosted the entire euro-zone's growth for the same time period to 1.1 percent, its strongest showing since 2006.

But it would be premature to start singing "Wunderbar" because while Germany outperformed analysts' expectations,  it was a performance global economy watchers generally didn't believe would last.

An excerpt from The Wall Street Journal:

However, economists warn that the euro zone's second-quarter expansion has been fueled by temporary factors, such as a rebound in construction in Germany and restocking.

Concerns that growth may be slowing in the U.S. and China have also fueled fears that euro-zone exports, particularly from Germany, will suffer. Economists say growth is likely to slow in the latter half of the year as stimulus measures run their course and governments cut spending to reduce their budget deficits.

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