Germany: Economy accelerates in Q1
May 12, 2017
Germany’s economy accelerated in the first quarter, according to a preliminary estimate released by the Federal Statistics Office (Destatis) on 12 May. In Q1, German GDP rose a seasonally-adjusted 0.6% over the previous quarter, up from the 0.4% expansion recorded in Q4 2016 and in line with market expectations.
According to Destatis, Q1’s acceleration was broad-based and came on the back of positive contributions of both the external sector and domestic demand. Fixed investment in particular grew strongly, as mild weather buttressed construction investment. Public and private consumption also inched up. On the external front, the pickup in global trade pushed export growth above that of imports, resulting in a net contribution from the external sector to growth.
In annual terms, GDP rose 2.9% in Q1, which marked a strong acceleration from Q4’s 1.3% increase. More complete results, including a detailed breakdown by expenditure, will be released on 23 May.
Author: Christopher Mc Innes, Economist