German economy stabilises in Q2 2023; exports down 1.1 per cent

“After slight declines in the previous two quarters, the German economy stabilised in spring,” said Ruth Brand, president of the Federal Statistical Office. The GDP for Q2 2023 was down 0.6 per cent compared to the same quarter a year earlier, price adjusted. The decrease was smaller (-0.2 per cent) after price and calendar adjustment.

Final consumption expenditure remained stable compared to the previous quarter. Household final consumption expenditure stabilised (0.0 per cent), and government final consumption expenditure rose slightly by 0.1 per cent. Gross fixed capital formation in machinery and equipment exceeded that in construction, increasing by 0.6 per cent and 0.2 per cent respectively.

The second quarter of 2023 witnessed a 1.1 per cent decrease in total exports of goods and services from the first quarter, while imports remained unchanged. Diverging trends were observed across economic sectors, with manufacturing increasing by 0.1 per cent and the aggregated sector of trade, transport, accommodation, and food services falling by 1.4 per cent, Destatis said in a press release.

Substantial declines were noted in final consumption expenditure, with a positive contribution from gross fixed capital formation in machinery and equipment. Gross value added in the second quarter of 2023 was 0.7 per cent lower than in the second quarter of 2022.

The second quarter saw an increase of 340,000 persons in employment, an increase of 0.7 per cent compared to the second quarter of 2022. At current prices, GDP rose by 6.5 per cent, and the gross national income by 6.9 per cent compared to a year earlier. Net average earnings increased by 8.7 per cent, largely due to tax-free premiums and higher wage settlements.

While Germany's economic development stagnated, positive growth was seen in France (+0.5 per cent) and Spain (+0.4 per cent). The United States outperformed most European countries with +0.6 per cent growth quarter on quarter. Compared with the same period a year earlier, Germany (-0.1 per cent) ranked below the EU (+0.5 per cent) in terms of economic development.

Fibre2Fashion News Desk (KD)