Germany’s economic growth will slow in the second half of this year the finance ministry has said. <br /><br /> It blamed that on as weaker foreign demand for goods.<br /><br /> Europe’s biggest economy enjoyed robust expansion in the first six months thanks to strong private consumption, higher state spending and rising construction activity.<br /><br /> But it is now set for a slowdown as growth in industrial orders stalled in July and factory output and exports unexpectedly fell.<br /><br /> The ministry said German economy will continue to grow, however, as private consumption is being boosted by record-high employment and rising wages. <br /><br /> In addition the government is spending billions of euros to accommodate and integrate a record influx of migrants.<br /><br /> “The economic upswing remains intact,” the ministry said.<br /><br /> The economy grew by 0.7 percent in the first quarter and by 0.4 percent in the second.<br /><br /> Wages boost<br /><br /> German real wages rose by 2.3 percent in the second quarter from the same period in 2015.<br /><br /> The Federal Statistics Office said nominal wages increased by 2.4 percent on the year between April and June while consumer prices rose by 0.1 percent in the second quarter.<br /><br /> The increase was mainly driven by strong wage hikes for workers in the real estate business, transport and logistics sector as well as catering industry.<br /><br /> In 2015, German real wages rose by 2.5 percent on the year, which was the strongest rate since 1992.<br /><br /> Chancellor Angela Merkel’s government introduced a national minimum wage of 8.50 euros per hour at the beginning of 2015, raising the purchasing power of low-income households.<br />
