German Q2 GDP Growth Slightly Below Forecasts


The German economy expanded a seasonally-adjusted 0.6 percent on quarter in the three months to June of 2017, missing market expectations of 0.7 percent and following an upwardly revised 0.7 percent growth in the previous period, the preliminary estimate showed. Positive contributions came from household consumption, fixed investment and government spending while net trade dampened an overall expansion.

The April-June expansion marked a 12th consecutive quarter of growth.

Compared with Q1 2017, final consumption expenditure of both households and general government increased markedly. Also, there was an increase in fixed capital formation in machinery and equipment, in construction and in other fixed assets compared with the previous period. However, the development of foreign trade had a downward effect on growth as the increase in imports was considerably larger than that of exports. 

Year-on-year, the economy expanded a calendar-adjusted 2.1 percent in the second quarter of 2017, beating market expectations of 1.9 percent and following an upwardly revised 2 percent growth in the previous period. It was the strongest pace of expansion since the first quarter of 2014. Meanwhile, unadjusted data showed the economy grew 0.8 percent on the year in the second quarter, easing from a 3.2 percent expansion in the previous period.

Destatis l Rida Husna | rida@tradingeconomics.com
8/15/2017 9:46:07 AM