News

German Q3 GDP Growth Revised Higher
Germany's gross domestic product grew by a record 8.5 percent in the three months to September 2020, compared to a preliminary estimate of an 8.2 percent expansion and after the historic slump of 9.8 percent in the second quarter. The expansion was supported by a rebound in household consumption (10.8 percent vs -11.1 percent in Q2), and strong fixed investment in machinery and equipment (16 percent vs -15.1 percent). In addition, net exports added positively to the growth as exports increased by 18.1 percent (vs -20.5 percent in Q2) while imports rose at a softer 9.1 percent (vs -15.9 percent in Q2). Year-on-year, the economy shrank by 4 percent in the September quarter, following a record contraction of 11.3 percent in the second quarter.
Published on 2020-11-24

German Q3 Economic Growth Stronger than Forecast
Germany's gross domestic product grew by a record 8.2 percent in the three months to September 2020, trying to recover from the historic slump of 9.8 percent seen in the second quarter and beating market consensus of 7.3 percent, a preliminary estimate showed. The expansion was supported by a rebound in household consumption, strong fixed investment in machinery and equipment and a sharp increase in exports. Year-on-year, the economy shrank by 4.3 percent in the third quarter, easing from a record contraction of 11.3 percent in the previous period. The economy was also 4.2 percent smaller when compared with Q4 2019, the quarter before the coronavirus pandemic hit. Meanwhile, Germany's government has revised upwards its 2020 GDP forecast. It now expects the economy to shrink by 5.5 percent, compared to an initial estimate of 5.8 percent decline, before rebounding by 4.4 percent in 2021.
Published on 2020-10-30

German GDP Contraction Steepest on Record
Germany's economy shrank by 9.7 percent on quarter in the April-June period, compared to a preliminary reading of a 10.1 percent plunge. This was the deepest quarterly GDP contraction on record, as efforts to contain the rapid spread of COVID-19 weighed on activity and demand. Household consumption tumbled 10.9 percent (vs -2.5 percent in Q1) and fixed investment slumped 7.9 percent (vs -0.5 percent in Q1) led by investment in machinery and equipment (-19.6 percent vs -7.3 percent) and in construction (-4.2 percent vs 5.1 percent). At the same time, exports plummeted 20.3 percent (vs -3.3 percent in Q1), while imports fell at a softer 16.0 percent (vs -1.9 percent in Q1). On a calendar-adjusted basis, the economy contracted 11.3 percent, also the steepest decline on record.
Published on 2020-08-25

German Economy Contracts at Record Pace
Germany's gross domestic product shrank by 10.1 percent on quarter in the April-June period, the most on record and compared to market expectations of a 9.0 percent contraction, a preliminary estimate showed. Germany was one of the first countries in Europe to start lifting lockdown measures, after the pandemic forced many non-essential businesses to close and people to stay at home for more than a month. However, a second wave of infections could lead to the re-imposition of more restrictions and hamper the economic recovery. A massive slump was recorded for exports and imports of goods and services as well as for household consumption and capital formation in machinery and equipment. General government, however, raised its spending in efforts to support the economy amid the crisis.
Published on 2020-07-30

German Economy Enters Recession as Virus Hits
Germany's economy shrank 2.2 percent on quarter in the three months to March 2020, following a 0.1 percent fall in the previous period and entering a recession. This was the steepest contraction in the GDP since the first quarter of 2009 and the second steepest contraction since German unification, as efforts to contain the COVID-19 pandemic forced many businesses to close and people to stay at home. Household consumption slumped 3.2 percent after being unchanged in the previous quarter, while fixed investment in machinery and equipment tumbled 6.9 percent (vs -2.0 percent in Q4) and that in other products dropped 0.3 percent (vs 1.1 percent). Net trade also contributed negatively to the GDP, as exports and imports fell. Government spending was little-changed (0.2 percent vs 0.1 percent), while investment in construction increased considerably (4.1 percent vs 0.1 percent).
Published on 2020-05-25

German GDP Falls the Most Since 2009
Germany's economy shrank 2.2 percent on quarter in the three months to March 2020, following a 0.1 percent fall in the previous period and entering a recession, a preliminary estimate showed. This was the largest decline in the GDP since the first quarter of 2009 and the second steepest contraction since German unification, as efforts to contain the coronavirus pandemic forced many businesses to close and people to stay at home. Private consumer spending dropped sharply as well as investments in equipment, particularly in machinery, equipment and vehicles. In addition, both exports and imports were down, while increases in government spending and investments in construction helped to support the economy.
Published on 2020-05-15

German Q4 GDP Stagnation Confirmed
Germany's economy showed no growth in the fourth quarter of 2019, following a 0.2 percent expansion in the previous three-month period, as household consumption stagnated (vs 0.5 percent in Q3) and net trade contributed negatively to the GDP due to a 0.2 percent decline in exports (vs 1.0 percent in Q3) and a 1.3 percent rise in imports (vs -0.4 percent in Q3). Meanwhile, government spending rose only slightly (0.3 percent vs 1.3 percent) and fixed investment in construction increased 0.6 percent (vs 0.4 percent in Q3) due in part to the mild weather. Investment in machinery and equipment investment fell 2.0 percent (vs -1.4 percent in Q3).
Published on 2020-02-25

German Economy Unexpectedly Stagnates in Q4
Germany's gross domestic product unexpectedly showed no growth in Q4 2019, after an upwardly revised 0.2% growth in Q3 and missing market expectations of a 0.1% advance, a preliminary estimate showed. Both household consumption and government spending slowed markedly, while investment in machinery and equipment was down. Meanwhile, exports fell slightly, while imports rose, suggesting that net trade had a negative impact on the economy. Year-on-year, the economy expanded by a calendar-adjusted 0.4 percent in Q4, following an upwardly revised 0.6% growth in Q3 and matching forecasts. On an unadjusted basis, the economy expanded 0.3%, slowing from an upwardly revised 1.1% expansion in Q3. Considering full 2019, the economy expanded 0.6%, well below 1.5% in 2018 and the lowest since 2013.
Published on 2020-02-14

German Q3 GDP Rebound Confirmed
Germany's GDP growth was confirmed at a seasonally-adjusted 0.1 percent in the third quarter of 2019, compared to a 0.2 percent contraction in the previous three-month period. Private and public spending increased at a faster pace, investment in construction rebounded, and net external demand contributed positively to the GDP. Year-on-year, the economy grew a calendar-adjusted 0.5 percent in the September quarter, after a 0.3 percent advance in the previous three-month period. On an unadjusted basis, the economy expanded by 1.0 percent, recovering from a 0.1 percent contraction in the second quarter.
Published on 2019-11-22

German Economy Avoids Recession in Q3
Germany's gross domestic product grew by a seasonally-adjusted 0.1 percent on quarter in the three months to September 2019, rebounding from a revised 0.2 percent fall in the previous period and beating market expectations of a 0.1 percent contraction, a preliminary estimate showed. Growth was supported mainly by private and public spending, and investment in construction. Year-on-year, the economy expanded by a calendar-adjusted 0.5 percent in the third quarter, following a 0.3 percent growth in the previous three-month period and matching forecasts. On an unadjusted basis, the economy expanded 1.0 percent, recovering from a 0.1 percent contraction in the second quarter.
Published on 2019-11-14

German GDP Contraction Confirmed in Q2
The German economy contracted a seasonally-adjusted 0.1 percent on quarter in the three months to June 2019, unrevised from the preliminary estimate and following a 0.4 percent growth in the previous period. Net external demand contributed negatively to the GDP as exports fell faster than imports, while investment in construction declined markedly. Year-on-year, the economy expanded a calendar-adjusted 0.4 percent in the June quarter, slowing from a 0.9 percent expansion in the previous three-month period. On an unadjusted basis, the economy stagnated, after a 0.8 percent advance in the first quarter.
Published on 2019-08-27

German Economy Contracts in Q2 as Exports Fall
Germany's gross domestic product contracted by a seasonally-adjusted 0.1 percent on quarter in the three months to June 2019, following a 0.4 percent expansion in the previous period and matching market expectations, a preliminary estimate showed. Net external demand contributed negatively to the GDP, mainly due to a slump in exports, while fixed capital formation in construction also declined.
Published on 2019-08-14

German Q1 GDP Rebound Confirmed
The German economy advanced a seasonally-adjusted 0.4 percent on quarter in the first quarter of 2019, unrevised from the preliminary estimate and after showing no growth in the previous period. The expansion was mainly supported by the fastest increase in household spending in eight years, a pick-up in construction activity and rising exports. Year-on-year, the economy expanded a calendar-adjusted 0.7 percent in the first quarter, following a 0.6 percent growth in the previous three-month period. On an unadjusted basis, the GDP rose by 0.6 percent, slowing from a 0.9 percent expansion in the December quarter.
Published on 2019-05-23

German Economy Returns to Growth in Q1
The German economy advanced a seasonally-adjusted 0.4 percent on quarter in the three months to March 2019, after showing no growth in the previous period and matching market expectations, a preliminary estimate showed. Fixed investment and household consumption led the expansion. Year-on-year, the economy expanded a calendar-adjusted 0.7 percent in the first quarter, following a 0.6 percent growth in the previous three-month period and also in line with forecasts. On an unadjusted basis, the GDP rose by 0.6 percent, easing from a 0.9 percent increase in the December quarter.
Published on 2019-05-15

German Q4 Economy Stagnation Confirmed
The German economy stagnated in the fourth quarter of 2018 after a 0.2 percent contraction in the July-September period, which was the first time GDP shrank since 2015. An increase in public spending, household consumption and fixed investment offset a negative contribution from inventory changes while net foreign trade was neutral. Year-on-year, the economy expanded a calendar-adjusted 0.6 percent in the fourth quarter, slowing markedly from a 1.1 percent growth the previous three-month period. On an unadjusted basis, the GDP grew by 0.9 percent, weaker than a 1.1 percent advance in the September quarter.
Published on 2019-02-22

German Economy Stalls in Q4, Avoids Recession
The German economy stalled in the fourth quarter of 2018, missing market expectations of a 0.1 percent growth and following a 0.2 percent contraction in the July-September period, which was the first time GDP shrank since 2015. Positive contributions came from fixed investment, household consumption and government spending, while net foreign demand gave no contribution to growth. Year-on-year, the economy expanded a calendar-adjusted 0.6 percent in the December quarter, following a 1.1 percent growth in the previous three-month period. On an unadjusted basis, the GDP grew by 0.9 percent, weaker than a 1.1 percent advance in the third quarter.
Published on 2019-02-14

German Q3 GDP Contraction Confirmed
The German economy shrank a seasonally-adjusted 0.2 percent on quarter in the three months to September of 2018, unrevised from the preliminary estimate and after a 0.5 percent growth in the previous period. This was the first quarterly contraction since the first quarter of 2015 due to declines in both exports and household consumption. Year-on-year, the economy expanded a calendar-adjusted 1.1 percent in the third quarter, following a 2 percent growth in the previous three-month period. On an unadjusted basis, the GDP grew by 1.1 percent, much weaker than a 2.3 percent advance in the June quarter.
Published on 2018-11-23

German GDP Contracts for 1st Time in 3-1/2 Years
The German economy shrank 0.2 percent on quarter in the three months to September 2018, worse than market expectations of a 0.1 percent fall and following a 0.5 percent growth in the previous period, a preliminary estimate showed. This was the first quarterly contraction since the first quarter of 2015 due to declines in both exports and household consumption. Year-on-year, the economy expanded a calendar-adjusted 1.1 percent in the September quarter, following a 2 percent growth in the previous three-month period. On an unadjusted basis, the GDP grew by 1.1 percent, much weaker than a 2.3 percent advance in the June quarter.
Published on 2018-11-14

German Q2 GDP Growth Confirmed at 0.5%
The German economy advanced a seasonally-adjusted 0.5 percent on quarter in the three months to June of 2018, following a 0.4 percent growth in the previous period and matching the preliminary estimate. Domestic demand supported the expansion while net exports contributed negatively to GDP growth. Year-on-year, the economy expanded a calendar-adjusted 2 percent in the second quarter, the least since the fourth quarter of 2016, following a 2.1 percent growth in the prior period. On a non-seasonally adjusted basis, the German economy grew by 2.3 percent, much faster than a 1.4 percent expansion in the first quarter.
Published on 2018-08-24

German Q2 GDP Growth Stronger than Expected
The German economy grew a seasonally-adjusted 0.5 percent on quarter in the three months to June 2018, following an upwardly revised 0.4 percent expansion in the previous period and beating market consensus of 0.3 percent, a preliminary estimate showed. Growth was boosted by both private and public consumption and by investment in equipment and construction. Year-on-year, the economy expanded a calendar-adjusted 2 percent in the second quarter, following a 2.2 percent growth in the previous three-month period and slightly below expectations of 2.1 percent. On an unadjusted basis, the GDP rose by 2.3 percent, much stronger than an upwardly revised 1.4 percent growth in the March quarter.
Published on 2018-08-14