22 May 2015
German first quarter GDP growth confirmed at 0.3% qoq - ING
FXStreet (Barcelona) - Carsten Brzeski of ING, notes that the second estimate of the statistical office confirmed that the German economy continued its solid recovery in the first quarter, albeit at a somewhat lower pace.
Key Quotes
“GDP growth in the Eurozone’s biggest economy came in at 0.3% QoQ, from 0.7% in the final quarter of 2014. Growth was driven by all domestic components, with the strongest growth contribution stemming from private consumption and the construction sector. The fact that inventories were a drag on growth actually bodes well for the coming quarters.”
“Today’s GDP data confirms the ongoing solid performance of the Eurozone’s largest economy. Even if the growth numbers were weaker than in other Eurozone countries, and some neighbours in the West, it is worth remembering that there still is an enormous difference between Germany and the rest of the Eurozone when it comes to absolute levels, not growth rates.”
“Nevertheless, nothing is older than yesterday’s or last quarter’s growth success. The growth components show that even if domestic demand has become an important growth driver, the lack of investment (leaving the construction sector aside) is currently probably Germany’s biggest weakness.”
“It’s now time to look ahead and see whether the advance laurels for the German economy were justified or whether confidence indicators were too enthusiastic. The Ifo index, to be released in less than two hours, will provide new evidence.”
Key Quotes
“GDP growth in the Eurozone’s biggest economy came in at 0.3% QoQ, from 0.7% in the final quarter of 2014. Growth was driven by all domestic components, with the strongest growth contribution stemming from private consumption and the construction sector. The fact that inventories were a drag on growth actually bodes well for the coming quarters.”
“Today’s GDP data confirms the ongoing solid performance of the Eurozone’s largest economy. Even if the growth numbers were weaker than in other Eurozone countries, and some neighbours in the West, it is worth remembering that there still is an enormous difference between Germany and the rest of the Eurozone when it comes to absolute levels, not growth rates.”
“Nevertheless, nothing is older than yesterday’s or last quarter’s growth success. The growth components show that even if domestic demand has become an important growth driver, the lack of investment (leaving the construction sector aside) is currently probably Germany’s biggest weakness.”
“It’s now time to look ahead and see whether the advance laurels for the German economy were justified or whether confidence indicators were too enthusiastic. The Ifo index, to be released in less than two hours, will provide new evidence.”