Exports Drive German GDP Growth in Q4


In the last quarter of 2013, the German GDP expanded by 0.4 percent on a quarter-on-quarter basis, confirming an earlier estimate and boosted by foreign trade, while domestic demand remained weak.

Quarter-on-quarter (upon price, seasonal and calendar adjustment), positive contributions were made mainly by foreign trade. According to provisional calculations, exports increased more considerably than imports. Compared with the third quarter of 2013, exports of goods and services were up 2.6 percent. 

Imports increased by not more than 0.6 percent in the same period. Consequently, the balance of exports and imports contributed 1.1 percentage points to GDP growth and was thus the key economic engine in the period under review.

As regards domestic demand, different developments were reported. Gross fixed capital formation both in machinery and equipment and in construction rose markedly compared with the third quarter of 2013 (+1.4 percent each). However, inventories declined considerably, which slowed down economic growth (–0.8 percentage points). Final consumption expenditure changed only marginally. While government final consumption expenditure remained unchanged at the level of the previous quarter, household final consumption expenditure was slightly lower (–0.1 percent).

Compared with a year earlier, economic growth accelerated in the course of 2013. The price-adjusted GDP rose 1.3 percent in the fourth quarter of 2013.

Exports Drive German GDP Growth in Q4


DESTATIS | Joana Taborda | joana.taborda@tradingeconomics.com
2/25/2014 9:14:29 AM