German GDP Rises Less Than Expected in Q1


The German economy is slow in gaining momentum. Compared with the previous quarter, the gross domestic product (GDP) increased by 0.1% in the first quarter of 2013 after adjustment for price, seasonal and calendar variations.

One of the reasons for this small growth at the beginning of the year, however, was the extremely cold weather. In the last quarter of 2012, the German economy had suffered a major setback of –0.7%, according to the most recent calculations. For the entire year of 2012, the GDP figures have not changed as compared with the previously published data (+0.7%, calendar-adjusted +0.9%).

In a quarter-on-quarter comparison, according to provisional calculations, growth was based almost only on demand by households, which increased their final consumption expenditure at the beginning of the year. However, in the last quarter of 2012, such expenditure had decreased according to the most recent calculations. As regards gross fixed capital formation, the negative trend of 2012 continued – compared with the previous quarter, it was down again. The balance of exports and imports had almost no impact on economic growth in the first quarter of 2013. Although imports of goods were markedly down from the last quarter of 2012, exports decreased, too.

In a year-on-year comparison, the price-adjusted GDP was down 1.4% in the first quarter of 2013. However, this considerable decrease was mainly due to calendar factors. The reference quarter had fewer working days than the same quarter a year earlier. Reasons are mainly the leap year of 2012 and the fact that the Easter holidays fell into different quarters. In calendar-adjusted terms, the GDP decreased by just 0.2%.

According to first provisional calculations, the GDP in the first quarter of 2013 was achieved by 41.5 million persons in employment in the domestic territory, which was an increase of 293,000 persons or 0.7% on a year earlier.


Destatis, contact@tradingeconomics.com
5/15/2013 7:50:37 AM