German GDP Growth Confirmed at 0.4% in Q2


The German economy grew a seasonally-adjusted 0.4 percent in the first quarter of 2015, accelerating from a 0.3 percent expansion in the January to March period and matching preliminary estimates. An expansion in net exports and consumption offset a a decline in investment.

Quarter-on-quarter, private consumption grew by 0.2 percent, as compared to a 0.4 percent growth in the March quarter. Public consumption rose 0.3 percent, slowing from a 0.6 percent growth in the preceding quarter. Overall consumption contributed 0.1 percentage points to growth. Gross fixed capital formation declined 0.4 percent, after registering a 1.7 percent expansion in the first quarter of 2015 with investment in construction dropping the most (-1.2 percent). In contrast, equipment investment grew by 0.1 percent and other plants investment expanded by 0.7 percent.

Exports grew by 2.2 percent, accelerating from 1.2 percent growth in the previous quarter. Imports rose by 0.8 percent, slowing from 1.9 percent growth in the first three months 0f 2015. That brought an upward effect of +0.7 percentage poin to the GDP. A reduction in inventories had a negative impact on growth (–0.4 percentage points). 

Year-on-year, the GDP expanded by 1.6 percent following a 1.2 percent expansion in the previous quarter. Household final consumption  and government consumption increased by 1.8 percent respectively. Gross fixed capital formation also grew by 1.8 percent with equipment investment expanding the most by 3.0 percent, followed by other plants investments (+2.7 percent) and construction investment (+0.8 percent). Overall investment added 0.4 percent to growth. While the reduction of inventories slowed down the GDP growth by 1.0 percentage points,  the balance of exports and imports added 0.9 percentage point contribution to the year-on-year GDP growth. 

German GDP Growth Confirmed at 0.4% in Q2


Destatis l Rida Husna l rida@tradingeconomics.com
8/25/2015 7:57:43 AM