German GDP Growth Confirmed At 1-Year High In Q1


The German economy expanded a seasonally-adjusted 0.6 percent in the first quarter of 2017, following a 0.4 percent growth in the previous period and matching the preliminary estimate. It was the strongest rate of expansion since the first quarter of 2016, supported by both domestic and foreign demand.

From the expenditure side, the positive contribution to GDP came from net exports (0.4 percentage points), fixed investment (0.3 percentage points), household consumption (0.2 percentage points) and government spending (0.1 percentage point). In contrast, changes in inventories subtracted 0.4 percentage points from growth.

Quarter-on-quarter, exports rose 1.3 percent (1.7 percent in Q4 2016) while imports also went up at a much slower 0.4 percent (2.5 percent in Q4).

Gross fixed capital formation went up 1.7 percent (0.4 percent in Q4), as construction investment increased by 2.3 percent (0.8 percent in Q4), due to mild weather. Also, investment in machinery and equipment grew by 1.2 percent, rebounding from a 0.1 percent fall in the prior quarter, and investment in other products expanded by 0.8 percent, stronger than a 0.3 percent rise in the preceding three months.

Private consumption rose 0.3 percent (0.2 percent in Q4), and government spending advanced 0.4 percent (0.3 percent in Q4). 

Year-on-year, the GDP advanced 1.7 percent, following a 1.8 percent growth in the previous three months. On a non-seasonally adjusted basis the economy grew 2.9 percent year-on-year (1.3 percent in Q4) mainly boosted by a jump in gross fixed capital formation (3.4 percent from -0.4 percent in Q4), as investment rose for construction (4.7 percent from 0.4 percent in Q4), machinery and equipment (2 percent from -2.6 percent in Q4) and other products (2.5 percent, the same as in Q4). Household spending expanded 1.6 percent (the same as in Q4) and government spending rose 1.5 percent (from 2.7 percent in Q4). Also, net external demand contributed positively, as exports went up 6.6 percent while imports advanced at a slower 5.6 percent.


Destatis l Rida Husna | rida@tradingeconomics.com
5/23/2017 10:25:57 AM