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- The German economy continued to grow also at the beginning of the year, though at a slower pace
The German economy continued to grow also at the beginning of the year, though at a slower pace
As the Federal Statistical Office (Destatis) already reported in its first release of 15 May 2018, the gross domestic product (GDP) increased 0.3% - upon price, seasonal and calendar adjustment - in the first quarter of 2018 compared with the fourth quarter of 2017. This is the 15th quarter-on-quarter growth in a row, contributing to the longest upswing phase since 1991. Last year, GDP growth rates were higher (+0.7% in the third quarter and +0.6% in the fourth quarter of 2017).
The quarter-on-quarter comparison (price, seasonally and calendar-adjusted) shows that positive contributions came from domestic 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 2017. Gross fixed capital formation in construction was up by as much as 2.1%. Also, household final consumption expenditure increased slightly (+0.4%). Government final consumption expenditure, however, decreased for the first time in almost five years (-0.5%) and had a downward effect on GDP growth.
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