German GDP Growth Strongest in 2 Years
The German economy advanced a seasonally-adjusted 0.7 percent in the March quarter of 2016, accelerating from a 0.3 percent growth in the previous two quarters and slightly above market expectations, preliminary estimates showed. It is the strongest expansion since the first quarter of 2014 as positive contributions came from domestic demand and investment while foreign trade had a slight downward effect on growth.
5/13/2016 8:11:35 AM
In the first quarter, final consumption expenditure of both households and general government increased. Capital formation was also higher, driven by a faster increase in fixed capital formation in construction as well as machinery and equipment. In contrast, foreign trade had a slight downward effect on growth, as imports increased more markedly than exports.
The economic performance in the three months to March was achieved by 43.1 million persons in employment, which was an increase of 533,000 or 1.3 percent on a year earlier.
Year-on-year, the GDP expanded 1.3 percent, slowing from a 2.1 percent growth in the previous three months. It is the weakest growth since the March quarter 2015.