Private consumption drives German first-quarter growth
Strong private consumption along with relatively high construction investment managed to drive a 0.7% ascend in German GDP in the first quarter. That has appeared to be more than a minor compensation of weaker foreign trade in the EU’s number one economy, as Tuesday’s data states.
When confirming a preliminary reading for economic growth, the Federal Statistics Office officially announced that consumer spending as well as construction investment each made a contribution of 0.2% points to GDP during the January-March period.
As for state spending, it dared to contribute up to 0.1 percentage points as German authorities spent more in order to integrate and accommodate migrants.
Net foreign trade appeared to be a drag of 0.1 points because exports edged up at a weaker tempo than imports. It’s because of a powerful impact of an economic slowdown in some emerging markets, including China.