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- German GDP rose 0.5% in Q2 as expected
German GDP rose 0.5% in Q2 as expected
The German economy continues to grow. As the Federal Statistical Office (Destatis) already reported in its first release of 14 August 2018, the gross domestic product (GDP) increased by 0.5% - upon price, seasonal and calendar adjustment - in the second quarter of 2018 compared with the previous quarter. In the first quarter of 2018, GDP growth had been slightly smaller (0.4%).
The quarter-on-quarter comparison following price, seasonal and calendar adjustment shows that, on the use side of the gross domestic product, positive contributions mainly came from domestic demand. The final consumption expenditure of households rose by 0.3% and government final consumption expenditure increased by 0.6% on the previous quarter. Capital formation was higher, too. Fixed capital formation in machinery and equipment increased by 0.3% and in construction by 0.6% on the first quarter of 2018. Overall, domestic uses increased markedly by 0.9% compared with the first three months of the year.
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