Economy: German economy is growing again


Supported above all by the construction boom and the consumer's desire to buy, the German economy has risen again at the beginning of the year. The gross domestic product (GDP) rose in the first quarter of 2019 compared to the previous quarter by 0.4 percent, as the Federal Statistical Office announced on Thursday. The Wiesbaden authority thus confirmed an earlier estimate.

Consumers are in a buying mood thanks to the historically good situation on the job market and higher incomes. Consumer spending rose 1.2 percent quarter on quarter. A similarly strong plus there was last in 2011, said the authority. Construction investment increased by 1.9 percent, with the industry also benefiting from the comparatively mild winter.

Investing in companies

Increased investment by companies in machinery and other equipment also contributed to growth. Demand from abroad grew. Exports of goods and services were stronger than imports. The state's consumption expenditure, which includes social benefits in kind and salaries of employees, on the other hand, declined.

In the second half of 2018, Europe's largest economy, burdened by international trade disputes and problems in the auto industry, had suffered a spike in its adoption of the WLTP consumption and emissions standard. At the end of the year, economic development stagnated and in the third quarter gross domestic product even shrank.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.