German Economy Grows Steadily
The Economy in Germany grew once again in the first quarter of 2015. The Federal Statistical Office, Destatis, reported an adjusted gross domestic product (GDP) growth of 0.3% above the last quarter of 2014.
The recorded increase in GDP is attributed to the notable rise in domestic demand. From January to March 2015, German household expenditure rose by 0.6% and government final consumption climbed by 0.7% above the previous quarter in 2014. In addition, capital formation also contributed positively to GDP growth in this first quarter 2015, since fixed capital formation in machinery and equipment as well as in construction climbed by 1.5% and 1.7% respectively.
The trade balance also had an impact on economic growth in the first quarter of 2015. Provisional calculations show that exports of goods and services escalated by 0.8% in comparison with the last three months of 2014. At the same time, imports almost doubled (+1.5%) the amount recorded between October and December 2014
The positive GDP development in the first quarter of 2015 was attained by 42.4 million people employed in Germany. This is an increase of 0.6% (275,000 employees) on the previous year.