Germany's GDP increased by 0.4% in the first quarter of 2019, as expected

According to the final report from Federal Statistical Office (Destatis), German economy continued to grow at the beginning of the year. The gross domestic product (GDP) increased by 0.4% (after price, seasonal and calendar adjustment) in the first quarter of 2019 compared with the fourth quarter of 2018. The German economic performance last declined slightly in the third quarter of 2018 (-0.2%) and stagnated in the fourth quarter of 2018 (0.0%).

The quarter-on-quarter comparison (price, seasonally and calendar adjusted) shows that positive contributions mainly came from domestic demand. Gross fixed capital formation in machinery and equipment increased by 1.2% from the fourth quarter of 2018. Gross fixed capital formation in construction was up by as much as 1.9%. Furthermore household final consumption expenditure rose by 1.2%. A similarly strong increase in the final consumption expenditure of households was last observed in 2011. However, government final consumption expenditure recorded a decline (-0.3%).

Compared with a year earlier, the price adjusted GDP rose by 0.6% (calendar adjusted: 0.7%) in the first quarter of 2019. The price-adjusted GDP was up 0.9% (calendar adjusted: 0.6%) in the fourth quarter of 2018 and 1.1% (calendar adjusted: 1.1%) in the third quarter of 2018 on the relevant quarters a year earlier.