German GDP Contraction Confirmed in Q2


The German economy contracted a seasonally adjusted 0.2 percent in the second quarter of 2014, as exports grew less than imports, matching preliminary estimates.

On a quarter-on-quarter comparison (adjusted for price, seasonal and calendar variations), positive contributions were made by final consumption expenditure. In the second quarter of 2014, both household (+0.1 percent) and government final consumption expenditure (+0.1 percent) were higher than in the first quarter of 2014.

Capital formation decreased. Gross fixed capital formation in machinery and equipment was slightly down (-0.4 percent) on the previous quarter. Gross fixed capital formation in construction fell markedly by 4.2 percent, one of the probable reasons being anticipatory effects in the first quarter caused by the unusually mild winter of 2013/2014.

Also, the balance of exports and imports did not support gross domestic product growth. Although, from April to June, slightly more goods and services were exported (+0.9 percent) than in the first three months of the year, the increase in imports over the same period was considerably larger (+1.6 percent). As a result, the balance of exports and imports made a negative contribution to GDP growth (-0.2 percentage points).

The price-adjusted GDP in the second quarter of 2014 was up by 0.8 percent from the second quarter of 2013. In calendar-adjusted terms, the increase was slightly more marked (+1.2 percent) because there was one working day less than a year earlier. 

The increase in the entire first half of 2014, when adjusted for price, seasonal and calendar effects, was as much as 0.8% on the second half of 2013.

German GDP Contraction Confirmed in Q2


Destatis | Joana Taborda | joana.taborda@tradingeconomics.com
9/1/2014 9:08:20 AM