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- In the first quarter of 2017 German GDP rose 0.6%. Especially fixed capital formation increased markedly
In the first quarter of 2017 German GDP rose 0.6%. Especially fixed capital formation increased markedly
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 product 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. Especially fixed capital formation increased markedly at the beginning of the year. Gross fixed capital formation in machinery and equipment rose 1.2% on the fourth quarter of 2016. Gross fixed capital formation in construction increased even 2.3%, one reason being the mild weather. Final consumption expenditure of households rose by 0.3% and government final consumption expenditure by 0.4% on the previous quarter.
External demand increased, too. According to provisional calculations, exports of goods and services were up a total 1.3% compared with the fourth quarter of 2016 (adjusted for price, seasonal and calendar effects). Although, in the same period, imports rose too, their increase was smaller (+0.4%) than that of exports. Arithmetically, the balance of exports and imports thus contributed +0.4 percentage points to GDP growth.
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