German GDP Growth Confirmed at 0.6% in Q2


The German economy expanded a seasonally-adjusted 0.6 percent on quarter in the second quarter of 2017, following a 0.7 percent growth in the previous period and matching the preliminary estimate. It marked the 12th straight quarter of expansion, mainly supported by domestic demand and investment while net trade had a downward effect.

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

Quarter-on-quarter, private consumption rose 0.8 percent, much faster than a 0.4 percent increase in the preceding quarter. 

Government spending increased by 0.6 percent, after a 0.2 percent rise in Q1.

Gross fixed capital formation went up 1.0 percent, following a 2.7 percent in Q1, as investment growth slowed for all categories: machinery and equipment (1.2 percent from 2.1 percent), construction (0.9 percent from 3.4 percent) and other products (0.9 percent from 2.0 percent). 

Exports rose 0.7 percent (from 1.6 percent in Q1) while imports went up at a much faster 1.7 percent (from 0.4 percent).

Year-on-year, the GDP advanced 2.1 percent, following a  2.0 percent growth in the previous three months. On a non-seasonally adjusted basis the economy grew by 0.8 percent year-on-year (from 3.2 percent in Q1) as private consumption (1.6 percent from 1.8 percent) and government spending (1.5 percent from 1.6 percent) increased at slower paces. In addition, gross  fixed capital formation went up  at a slower 1.5 percent (from 4.8 percent in the March quarter), as investment rose at a slower pace for: construction (2.3 percent from 6.2 percent) and other products (3.4 percent from 3.9 percent). In contrast, investment in machinery and equipment fell 0.7 percent (from 3.3 percent in the preceding quarter). On the other hand, net external demand contributed negatively, as exports went up 1.0 percent while imports advanced at a faster 3.8 percent.

Destatis l Rida Husna | rida@tradingeconomics.com
8/25/2017 7:24:02 AM