German Economy on Growing Path
The economy in Germany grew in the second quarter of 2015. According to the Federal Statistical Office, Destatis, after price, seasonal, and calendar adjustment, the gross domestic product (GDP) rose by 0.4% above the first quarter’s results.
The gross domestic product increased year on year as well as quarter over quarter.
Quarter over quarter and after price, seasonal and calendar adjustment, the balance of exports and imports contributed the most to GDP growth with a 0.7% increase. During the second quarter 2015, both exports and imports of goods and services increased by 2.2% and 0.8%.
With regards to domestic demand, household final consumption increased by 0.2% and government expenditure rose by 0.3% above the first quarter 2015. At the same time, fixed capital formation fell by 0.4% below the first quarter’s value. Furthermore, the recorded reduction in inventories had a negative effect on GDP growth (-0.4).
Year on year the adjusted GDP grew by 1.6% in the second quarter of 2015. This performance was achieved by 42.8 persons in employment, an increase of 175,000, or 04% above last year’s value.
Foreign trade also played an important role in GDP growth year-on-year. In the second quarter 2015, price-adjusted export and import of goods and services rose by 6.6% and 5.6% respectively. The trade balance contributed 0.9 percentage points to GDP growth.