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- German preliminary GDP rose 0.6% in Q1, as expected
German preliminary GDP rose 0.6% in Q1, as expected
The German economy continues to grow. In the first quarter of 2017, the gross domestic product (GDP) rose 0.6% on the fourth quarter of 2016 after adjustment for price, seasonal and calendar variations. The Federal Statistical Office (Destatis) also reports that, in the second half of the previous year, the GDP grew a little more moderately (+0.2% in the third and +0.4% in the fourth quarter of 2016).
The quarter-on-quarter comparison (following price, seasonal and calendar adjustment) shows that positive contributions came from both domestic and foreign demand, according to provisional calculations. Capital formation increased substantially. Due to the mild weather, fixed capital formation especially in construction, but also in machinery and equipment was markedly up compared with the fourth quarter of 2016. Households and general government increased their final consumption expenditure slightly at the beginning of the year. In addition, the development of foreign trade was more dynamic and contributed to growth as exports increased more than imports, according to provisional results.
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