German economy continues to grow significantly in Q3, foreign trade contributed positively
Source: FxWire Pro - Commentary / 23 Nov 2017 12:15:54 Eastern Standard Time
The economic performance of Germany continues to increase considerably. The Federal Statistical Office reported that the GDP rose 0.8 percent sequentially in the third quarter. Foreign trade contributed positively to the economic growth after adjustment for price, seasonal and calendar variations. Exports of goods and services rose 1.7 percent sequentially in the third quarter. Imports rose less markedly than exports, rising 0.9 percent. Thus, the balance of exports and imports had a positive impact on the GDP growth.
Meanwhile, consumption expenditure of households and of general government remained stable at the level of the second quarter. Capital formation showed a positive development, growing 0.4 percent. The gross fixed capital formation rose especially in machinery and equipment by 1.5 percent, but it dropped in construction by 0.4 percent.
On a year-on-year basis, the German economy grew 2.3 percent in the September quarter after rising 1 percent in the second quarter and 3.4 percent in the first quarter.
Overall labor productivity rose 0.8 percent in the third quarter. When gauged per hour worked by persons in employment, the rise was larger because the average number of hours worked per person in employment was down 0.3 percent year-on-year.
On a year-on-year basis, domestic demand mainly contributed to the third quarter growth, Household final consumption expenditure grew a price-adjusted 2.1 percent, while government final consumption expenditure rose 0.9 percent. Gross fixed capital formation in construction rose 3.2 percent. Foreign trade also contributed positively to the year-on-year growth. Exports of goods and services rose 4.8 percent, whereas imports grew 5.5 percent. Balance of exports and imports added 0.1 percentage points to the GDP growth.
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