Financial News: German GDP Growth Beats Estimate

German GDP Growth Beats Estimate

(RTTNews) - Germany's economy expanded more than estimated in the second quarter as exports remained strong despite geopolitical tensions, official data revealed on Tuesday.

Gross domestic product posted a quarterly growth of 0.3 percent, which was revised up from 0.2 percent estimated initially, data from Destatis showed. This followed an expansion of 0.4 percent in the first quarter.

On a yearly basis, GDP growth accelerated to 1.0 percent in the second quarter from 0.7 percent in the first quarter. The rate was revised up from 0.9 percent estimated on July 30. Price-adjusted GDP also grew 1.0 percent from a year ago after rising 0.8 percent in the preceding period.

"The German economy is maintaining the growth momentum seen at the start of the year", Destatis President Ruth Brand said. "As in the first quarter, growth was primarily driven by the positive development of exports", Brand added.

The expenditure-side of GDP showed that foreign trade expanded substantially with strong goods exports. Exports of goods and services were up 2.0 percent and imports gained 1.5 percent.

Gross fixed capital formation dropped 0.2 percent as investment in machinery and equipment declined 1.4 percent. Gross fixed capital formation in construction logged a slight increase of 0.1 percent, stronger growth failed to materialize following the weak start to the year partly due to the unusually cold conditions, said Destatis.

Growth in final consumption expenditure edged up 0.1 percent with household spending and government consumption rising 0.1 percent each.

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