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German GDP: 12 quarters of expansion

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Staff Writer | August 25, 2017
German GDP expansion
Germany   German GDP growth confirmed at 0.6% in Q2

The German economy expanded a seasonally-adjusted 0.6% in the second quarter of 2017, following a 0.7% 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 brought a downward effect.

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

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

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

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

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

Year-on-year, the GDP advanced 2.1%, following a 2.0% growth in the previous three months. On a non-seasonally adjusted basis the economy grew by 0.8% year-on-year (from 3.2% in Q1) as private consumption (1.6% from 1.8%) and government spending (1.5% from 1.6%) increased at slower paces. In addition, gross fixed capital formation went up at a slower 1.5% (from 4.8% in the March quarter, as investment rose at a slower pace for: construction (2.3% from 6.2%) and other products (3.4% from 3.9%).

In contrast, investment in machinery and equipment fell 0.7% (from 3.3% in the preceding quarter).

On the other hand, net external demand contributed negatively, as exports went up 1.0% while imports advanced at a faster 3.8%.


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