German Economy Shows More Life

Thanks to strong exports, the German economy grew in the second quarter of 2004 by 2 percent over the previous year. Gross domestic product (GDP) increased by 0.5 percent over the first quarter, the German Federal Statistics Office announced Thursday. An added work day also contributed to the 0.5 percent rise, which otherwise would have left GDP at 1.5 percent, the same level as in the first three months of the year. Domestic demand, however, had "nearly stagnated." Economics Minister Wolfgang Clement said he was confident economic growth would continue in the second half of the year. But Hamburg Institute of International Economics head Thomas Straubhaar and opposition politicians warned that high oil prices could stall the export-based growth.