Germany: Economic growth remains robust in 2011
January 11, 2012
In 2011, the economy remained healthy despite a deterioration of the debt crisis in the Eurozone. According to preliminary estimates from the Federal Statistics Institute (Destatis), GDP expanded 3.0% in 2011, which follows the already strong 3.7% increase recorded in 2010. The reading was in line with market expectations. The preliminary figure is still subject to revision and a more detailed data set for 2011, including fourth quarter results, will be published on 15 February. The healthy 2011 print was primarily the result of strong growth in domestic demand. While government consumption slowed somewhat to a 1.2% expansion in 2011 (2010: +1.7%), private consumption accelerated from a 0.6% increase in 2010 to a 1.5% expansion. In addition, fixed investment showed strong upward momentum and expanded 6.5% in 2011 (2010: +5.5%). Finally, exports of goods and services grew 8.2%, which represents a deceleration compared to the 13.7% increase recorded in 2010, while imports expanded 7.2%, also below the 11.7% expansion tallied in 2010.
Author: Ricardo Aceves, Senior Economist