If we look at Germany, which accounts for one-third of the euro area’s GDP, the expansion has, so far, even fallen short of that in other member states of the euro area. Since emerging from its mild recession around the beginning of this year, the German economy has not progressed beyond the initial stages of a recovery and lingers in a state resembling lethargy.
The fact that, after half a year of expansion, the dynamic factors have not managed to take root in any crucial way can be attributed to continued weak domestic demand, to the ongoing contraction of the construction sector and to the repercussions of strikes in the metal and electronic industries.