Germany: Higher exports and investments support GDP growth - ICICI Bank : Treasury Research

Real GDP in Germany, the largest Euro member, posted a growth of 0.7% QoQ in Q2 2013, marking its highest growth since Q1 2011. Notably, Q1 2013 real GDP growth was revised down from 0.1% to 0.0%. In YoY terms also, GDP increased 0.5% last quarter, as against a contraction of 0.3% in the first quarter of 2013.

A higher growth in exports than imports helped net exports to contribute 0.2 percentage points to GDP growth, marking its first positive contribution in the past three quarters.

The largest contributors to real GDP growth in Q2 2013 were fixed investments and private consumption expenditure. Investments in constructions grew 2.6% QoQ, as against a decline of 2.2% in Q1 2013, while investments in machinery and equipments increased 0.9% QoQ after six consecutive declines.

Source : Equity Bulls

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