German Economy Grew 0.3 Percent in Second Quarter Supported by Exports
The Federal Statistical Office of Germany revised the second-quarter GDP growth data upward from 0.2 percent to 0.3 percent. While export growth supported growth in the country, equipment investments declined.
The German economy recorded a growth rate of 0.3 percent in the second quarter of this year compared to the previous quarter, contributed by an increasing export performance.
Upward Revision in GDP Data
The Federal Statistical Office of Germany (Destatis) shared the final seasonally and calendar-adjusted gross domestic product data for the second quarter with the public. According to the statement, the growth rate previously estimated at 0.2 percent on July 30 was updated to 0.3 percent.
Export Growth and Investment Levels
Destatis President Ruth Brand stated that the momentum achieved by the country's economy was driven by strong export performance, announcing that exports of goods and services increased by 2.0 percent in the second quarter.
In the same period, equipment investments fell by 1.4 percent, while consumer spending followed a fairly stagnant course with a 0.1 percent increase.
Risks and Inflationary Pressures
Despite the growth figures, the German Central Bank (Bundesbank) pointed to the adverse effects of low water levels in the Rhine River on transport capacity and freight costs.
Driven by the crisis in the Strait of Hormuz and high energy costs, inflation reached 2.8 percent in July. Economists project that inflationary pressures may persist in the coming months.