In the first quarter, GDP expanded a seasonally and working day adjusted 1.5% over the previous quarter, which was well above the 0.4% increase observed in the fourth quarter. The expansion, which represented the fastest pace since the second quarter of 2010, confirmed the advance estimate released on 13 May and overshot analysts' expectations of a 0.9% rise. A year-on-year comparison shows that GDP grew 5.2% in the first quarter, faster than the 3.8% expansion witnessed in the fourth quarter. The acceleration over the previous quarter mainly reflected strong growth in domestic demand, owing to a rebound in gross fixed investment, which bounced back from a 0.1% contraction in the fourth quarter to a 5.0% expansion. In addition, total consumption remained resilient, as government consumption rose 1.3% in the first quarter, contrasting a 0.2% fall in the previous quarter. Private consumption increased a modest 0.4% over the previous quarter, slightly below the 0.6% increase observed in the previous quarter. In addition, exports of goods and services grew 2.3% in the first quarter, faster than the 1.8% increase observed in the fourth quarter. In the same vein, imports accelerated from a 0.8% expansion in the final quarter of 2010 to a 1.5% increase in the first quarter. As a result, the net contribution to overall growth from the external sector in the first quarter matched the previous quarter's 0.5 percentage point contribution. At the sector level, the first quarter result reflected strong growth in the industrial sector (Q4: +2.7% quarter-on-quarter; Q1: +4.8% qoq), which benefited from buoyant construction activity. The services sector improved from a flat reading observed in the fourth quarter to a 0.7% expansion in the first quarter. Owing to the country's rapid economic recovery, the government recently revised its growth estimates for this year and now expects the economy to expand 2.6%, up from its previous 2.3% estimate. For 2012, the government anticipates the economy to grow 1.8%, which remained unchanged from its previous forecast. Meanwhile, the Bundesbank, which has recently welcomed Jens Weidmann as President, expects economic activity will grow 2.0% this year and 1.5% in 2012. In a recent statement, President Jens Weidmann said that the first quarter GDP growth figures confirm the Bank's view that the economy remains on a solid growth path and that has recovered faster than initially expected.
Economy powers ahead
May 24, 2011
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Germany Economic News
October 24, 2016
The Markit Flash Composite Purchasing Managers’ Index (PMI) rose from 52.8 in September to 55.1 in October.
October 10, 2016
The seasonally- and calendar-adjusted trade surplus increased from EUR 19.4 billion in July to EUR 22.2 billion in August, driven up by recovering exports.
October 7, 2016
In August, industrial production rose 2.5% from the previous month in seasonally-adjusted terms, in contrast to July’s large 1.6% drop, which had been the lowest reading in nearly two years.
September 29, 2016
Consumer prices in September rose 0.1% in a month-on-month comparison, according to preliminary data released by the Federal Statistics Office (Destatis) on 29 September.
September 28, 2016
Heading into October, the mood among German consumers weakened slightly but still stayed at a high level.