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Germany — Q1 2010 GDP rise confirmed, Q4 2009 corrected upwards

21 May 2010

As reported by the Federal Statistical Office (Destatis) already in its first release of 12 May 2010, the gross domestic product (GDP) in the first quarter of 2010 rose 0.2% on the previous quarter, upon price, seasonal and calendar adjustment. At the same time, the result for the fourth quarter of 2009 was slightly corrected upwards, now also showing a 0.2% increase. Although the upward movement observed for the economy in the second quarter of 2009 (+0.4%) and the third quarter of 2009 (+0.7%) was slightly slowed down, it continued despite the relatively cold and long winter.

The economic development in the first quarter of 2010 was supported, among other things, by exports which — upon price, seasonal and calendar adjustment — rose 2.6% on the previous quarter. The fact that the balance of exports and imports nevertheless slowed down GDP growth by a negative contribution of —1.1 percentage points was due to the even larger increase in imports (+6.1%).

However, domestic consumption (contribution to growth: +1.3 percentage points) offset the negative impact of the balance of exports and imports: As regards capital formation, an increase in capital formation in machinery and equipment (+1.6%) and a strong building up of inventories more than offset the decrease in capital formation in construction (—3.8%). Final consumption expenditure of households, too, was down in the reference quarter (—0.8%), while government final consumption expenditure rose by +1.1%.

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