Germany’s economy likely grew more significantly more in the second quarter than in the first, the finance ministry said yesterday, adding that the recovery should strengthen in the second half of the year.
In its monthly report, the ministry said the improved growth in Europe’s largest economy was partly due to a pickup in the construction sector in the second quarter after a slowdown over the winter because of harsh weather.
Increased momentum in the industrial sector was also likely to have contributed very positively to GDP in the second quarter. The economy grew 0.2 percent on the quarter in the first three months of the year.
OPTIMISM
“Given the upward trend in industrial demand and the optimistic mood among companies, the economic recovery should strengthen in the second half of the year,” the ministry said.
“The recent positive development, however, should not obscure the fact that with important indicators, pre-crisis levels have not yet been reached and production is still below-capacity,” the ministry said.
Germany emerged from its deepest post-war recession in the second quarter of last year, and recent indicators have pointed to a pickup in the pace of recovery.
German trade with the rest of the world surged in May, while industrial output jumped more than expected, data showed earlier this month.
The ministry said output was likely to continue rising over the coming months and Germany was benefiting in particular from demand for its capital goods, as demand worldwide and especially in emerging Asian countries picked up.
“The outlook for a further rise in exports is good,” the ministry said, adding that the rise in imports and domestic orders pointed to recovering domestic demand.
WEAK CONSUMPTION
Private consumption was likely to have remained weak in the second quarter, but will pick up in the course of the year due to a recovery in the labor market and tax relief for households introduced by the government at the start of this year, it said.
The ministry said it did not expect the labor market to deteriorate, given that unemployment was decreasing as the use of shorter working hours declined and economic indicators were positive. Unemployment fell last month fell to its lowest level since December 2008.
The ministry added that consumer prices were likely to develop “calmly” over the course of the year.
INSURRECTION: The NSB said it found evidence the CCP was seeking snipers in Taiwan to target members of the military and foreign organizations in the event of an invasion The number of Chinese spies prosecuted in Taiwan has grown threefold over a four-year period, the National Security Bureau (NSB) said in a report released yesterday. In 2021 and 2022, 16 and 10 spies were prosecuted respectively, but that number grew to 64 last year, it said, adding that the Chinese Communist Party (CCP) was working with gangs in Taiwan to develop a network of armed spies. Spies in Taiwan have on behalf of the CCP used a variety of channels and methods to infiltrate all sectors of the country, and recruited Taiwanese to cooperate in developing organizations and obtaining sensitive information
BREAKTHROUGH: The US is making chips on par in yield and quality with Taiwan, despite people saying that it could not happen, the official said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has begun producing advanced 4-nanometer (nm) chips for US customers in Arizona, US Secretary of Commerce Gina Raimondo said, a milestone in the semiconductor efforts of the administration of US President Joe Biden. In November last year, the commerce department finalized a US$6.6 billion grant to TSMC’s US unit for semiconductor production in Phoenix, Arizona. “For the first time ever in our country’s history, we are making leading edge 4-nanometer chips on American soil, American workers — on par in yield and quality with Taiwan,” Raimondo said, adding that production had begun in recent
Seven hundred and sixty-four foreigners were arrested last year for acting as money mules for criminals, with many entering Taiwan on a tourist visa for all-expenses-paid trips, the Criminal Investigation Bureau (CIB) said on Saturday. Although from Jan. 1 to Dec. 26 last year, 26,478 people were arrested for working as money mules, the bureau said it was particularly concerned about those entering the country as tourists or migrant workers who help criminals and scammers pick up or transfer illegally obtained money. In a report, officials divided the money mules into two groups, the first of which are foreigners, mainly from Malaysia
SILICON VALLEY HUB: The office would showcase Taiwan’s strengths in semiconductors and artificial intelligence, and help Taiwanese start-ups connect with global opportunities Taiwan has established an office in Palo Alto, one of the principal cities of Silicon Valley in California, aimed at helping Taiwanese technology start-ups gain global visibility, the National Development Council said yesterday. The “Startup Island Taiwan Silicon Valley hub” at No. 299 California Avenue is focused on “supporting start-ups and innovators by providing professional consulting, co-working spaces, and community platforms,” the council said in a post on its Web site. The office is the second overseas start-up hub established by the council, after a similar site was set up in Tokyo in September last year. Representatives from Taiwanese start-ups, local businesses and
RSS