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German economy may slow down in the Q2

German economy may slow down in the Q2, according to a report of German economic situation in July released by the German Economy Ministry Thursday.

According to the report, the unfavorable global economic development and the inadequate domestic demand both burdened the German economy. The unfavorable economic development include the soaring oil and food prices, the turbulence in global financial markets, the continuing stronger euro and the gloomy economic prospects of the United States and some important European trading partners such as Italy, Spain and Britain. They made the external demand for the products of German industry declined in the last few months.

German domestic demand is currently hurt by continued price rises in energy and food. As there are no significant increases in wages and salaries in the labor market, the private consumption can not stimulate the domestic economy as previously expected. The official data for economic development of Germany in the Q2 will be published by the Federal Statistics Office of Germany on Aug. 14. (