The final 2Q GDP reading for Germany showed economic activity expanded 0.3% after contracting for the last four consecutive quarters, while the growth rate fell at an annualized pace of 5.9% from the previous year after being adjusted for the number of working days. The breakdown of the report showed private consumption increased 0.7%, which was supported by the 0.4% rise in government spending, while construction investments increased 1.4% from the first quarter versus expectations for a 2.0% rise. Moreover, domestic demands slumped 1.3%, with improves tumbling 5.1% from the first quarter, while exports slipped 1.2% after plunging 10.5% during the three-months through March. The EUR 85B in government spending, approved by Chancellor Angela Merkel, has certainly helped to lift Europe’s largest economy out of the worst recession in over half a century however, as ECB President Trichet sees ‘a very bumpy road ahead,’ the economic recovery is likely to be drawn out as the Bundesbank forecasts unemployment to peak at 10.5% in 2010.