GDP up 2.5% in Q2 this year

16 Aug '07

3 min read

The upward trend of the German economy has slowed down a little: The gross domestic product (GDP) rose by 0.3% in the second quarter of 2007 on the first quarter of 2007 upon price, seasonal and calendar adjustment. The GDP measures the value of the economic performance within the domestic territory. The economic performance in the first quarter of 2007 grew 0.5%.

As further reported by the Federal Statistical Office, the GDP was up 2.5% in the second quarter of 2007 compared with the second quarter of 2006, following a 3.3% increase in the first quarter of 2007. Contrary to the previous quarters, there was no calendar effect in the reference quarter since the number of working days available was the same as in the relevant quarter of the previous year.

In the second quarter of 2007, economic growth was based especially on the highly dynamic foreign trade. Domestic demand, too, made a positive, though smaller contribution to growth: Gross fixed capital formation in machinery and equipment was considerably up again, whereas gross fixed capital formation in construction decreased in the reference quarter.

The economic performance in the second quarter of 2007 was achieved by 39.6 million persons in employment, which was an increase of 671,000 persons or 1.7% on a year earlier.

In addition to the first calculation of data for the second quarter of 2007, the results published so far for the last four years (from 2003) have been revised at the same time, as is the case every year in August.

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