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.

The biggest contributions to the GDP growth came from household consumption (0.6 percentage points), gross fixed capital formation (0.2 percentage points), and net foreign trade (0.2 percentage points). In contrast, changes in inventories and public spending subtracted 0.6 percentage points and 0.1 percentage points respectively.

Household consumption surged 1.2 percent in the March quarter, the steepest quarterly growth since 2011, compared to a 0.3 percent gain in the December quarter. In addition, fixed investment advanced at a faster 1.1 percent (vs 0.8 percent in Q4), mainly boosted by investment in construction (1.9 percent vs 1 percent) and machinery and equipment (1.2 percent vs 0.7 percent). Exports of goods and services rose 1 percent in the three months to March (vs 0.6 percent in Q4) while import growth was steady at 0.7 percent.

Meanwhile, government spending contracted 0.3 percent
, compared to an increase of 1.3 percent in the previous quarter.

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, easing from a 0.9 percent increase in the December quarter.

German Q1 GDP Rebound Confirmed


Destatis | Rida Husna | rida@tradingeconomics.com
5/23/2019 11:15:48 AM