News from Berlin - German economic activity has risen steeply over the past month. According to financial research bureau Markit, output of the German private sector improved throughout July. The rise in economic activity came rather unexpected, as their earlier predictions indicated a slight deterioration to occur during the summer. The activity boost was spearheaded by both the German service sector and industry sector, and confirms forecasts by the International Monetary Fund (IMF) for German economic growth released earlier this week.

In its forecasts for the German economy the IMF further commended Germany’s commitment to European integration. At the same time, the Fund recommended the country to make more public investments over the next four years. Further investments in projects related to transport infrastructure and education could decisively tip the scales in favour of prolonged economic growth.

Economic activity has risen over the whole of the Eurozone, with economic output picking up steadily.  According to an analysis from Markit economist Chris Williamson, economic growth in the Eurozone has risen to one of the highest levels in three years. However this growth, about 0.4 percent per quarter, can be called modest at most. While the figures on Germany and the Eurozone make for a good beginning of the journey to follow, further progress is necessary for lasting improvements in the labor market.

News from Berlin – Berlin Global