The German economy grew by 1.5 percent in 2018, following a 2.2 percent expansion in 2017 and matching market expectations, a preliminary estimate showed. It was the weakest growth rate in five years amid a global economic slowdown, persistent trade tensions with the US and the risk of Britain leaving the EU without a deal. Household consumption rose at a slower 1 percent (vs 1.8 percent in 2017) and government spending advanced 1.1 percent (vs 1.6 percent). Also, export growth slowed to 2.4 percent (vs 4.6 percent) and import growth eased to 3.4 percent (vs 4.8 percent). Fixed asset investment expanded 3 percent (vs 2.9 percent) boosted by machinery and equipment and construction. Adjusted for calendar effects, growth slowed to 1.5 percent from 2.5 percent in the previous year. Data from last November showed the economy expanded a calendar-adjusted 1.1 percent in the third quarter of 2018, following a 2 percent growth in the previous three-month period. GDP Annual Growth Rate in Germany averaged 2.02 percent from 1971 until 2018, reaching an all time high of 7.20 percent in the first quarter of 1973 and a record low of -6.80 percent in the first quarter of 2009.
GDP Annual Growth Rate in Germany is expected to be 2.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Annual Growth Rate in Germany to stand at 2.20 in 12 months time. In the long-term, the Germany GDP Annual Growth Rate is projected to trend around 2.40 percent in 2020, according to our econometric models.