2017.08.2502:36:00UTC+00German Economy Expands As Estimated In Q2

The German economy expanded as initially estimated in the second quarter, detailed report from Destatis showed Friday.

Gross domestic product grew 0.6 percent sequentially in the second quarter, slightly slower than the 0.7 percent seen in the first quarter. The rate matched preliminary estimate.

On a yearly basis, GDP expanded by a working-day adjusted 2.1 percent, following a 2 percent growth logged in the previous quarter.

Price-adjusted GDP growth came in at 0.8 percent versus 3.2 percent a quarter ago. The statistical office confirmed the preliminary estimate released on August 15.

The expenditure-side breakdown of GDP showed that quarter-on-quarter growth in private consumption doubled to 0.8 percent from 0.4 percent. Likewise, government spending advanced 0.6 percent after gaining 0.2 percent.

Gross fixed capital formation rebounded from the first quarter. Investment in machinery and equipment grew 1.2 percent and that in construction rose 0.9 percent.

As regards foreign demand, there were mixed signals. According to provisional calculations, exports of goods and services were up 0.7 percent. However, imports increased more substantially by 1.7 percent.

As a result, the balance of exports and imports had a downward effect of -0.3 percentage points on GDP growth.

In a separate communique, Destatis said net lending of general government amounted to EUR 18.3 billion in the first half of 2017. As a percentage of GDP, this was a surplus ratio of +1.1 percent.