Following a weak start into the year, the German economy is gaining momentum and grew at its strongest rate in more than a year. The gross domestic product increased by 0.7 percent qoq driven by private consumption.
Final consumption expenditure was up both for households and government when compared with the previous quarter. Also, there was a marked increase in fixed capital formation, one of the main reasons probably being weather-related catch-up effects following the unusually long and cold winter.
In addition, the quarter-on-quarter increase in exports was somewhat larger than the rise in imports, so that the balance of exports and imports also contributed to GDP growth.
In the first quarter of 2013, GDP growth was revised to show stagnation of 0.0 percent, down from a 0.1 percent expansion previously estimated.
8/14/2013 8:21:22 AM