German GDP Growth Slows to 0.3% in Q1

The German economy advanced a seasonally-adjusted 0.3 percent in the first three months of 2015, a sharp slowdown from a 0.7 percent growth reported in the previous period as an expansion in consumption and investment was unable to offset a downward effect of foreign trade.

Positive contributions mainly came from domestic demand, as households and general government increased their final consumption expenditure at the beginning of the year, flash estimates showed. Capital formation also increased. Fixed capital formation in both construction and machinery and equipment was markedly up compared with the fourth quarter of 2014. In contrast, foreign trade had a downward effect to the economy. Exports of goods and services were slightly up as compared with the fourth quarter of 2014. Imports recorded a much stronger increase.

Year-on-year, the GDP expanded by 1.1 percent, compared to 1.6 percent expansion in the last quarter of 2014.

The economic performance in the first quarter of 2015 was achieved by 42.4 million persons in employment in the domestic territory, which was an increase of 275,000 or 0.7% on a year earlier.

German GDP Growth Slows to 0.3% in Q1

DESTATIS l Rida Husna l
5/13/2015 8:13:36 AM