Germany – economic activity picks up

There was a steep rise in economic activity in Germany during Q2 2013, according to preliminary data published by the Federal Statistical Office.

GDP (gross domestic product) grew by 0.7% during the second quarter in comparison to Q1, after adjustments were made for seasonal variations, calendar-day and prices.

Dr. Philipp Rösler, Federal Minister of Economics and Technology, said:

“The economic upswing is continuing. The people in Germany have every cause to be optimistic about the future. We have emerged well from the period of weakness in the 2012/2013 winter half-year. Gross domestic product in the second quarter expanded at a much faster pace than expected by most experts.”

The German government put this sharp economic upturn down to the “robust dynamism” of the domestic economy.

Consumer spending increased strongly in Germany

During the first six months of this year, consumer spending in Germany increasing significantly.

Personal net revenue has received a boost from tax relief and social security contributions that came into effect at the beginning of 2013.

According to the Federal Ministry of Economics and Technology, Germany, “consumers are increasingly in a buying mood and sales have risen”.

Analysts are particularly encouraged that companies have increased their investments for the first time in the last six quarters.

German authorities report a drop in the level of uncertainty among the population, combined with rising levels of confidence.

A growing number of companies and consumers believe the positive trend in Germany is set to continue.

The Federal Ministry of Economics and Technology wrote online:

“It is now crucial that we further strengthen this confidence by implementing credible reforms in the eurozone in order to trigger new self-sustaining dynamism in Europe. In addition, Germany must stick to its successful course, i.e. sound budgets, competitive companies and policies which create scope for relief for all citizens. This is the basis for lasting prosperity for all.”

Some facts about Germany

  • Official name – Federal Republic of Germany (Bundesrepublik Deutschland)
  • Population – 80,399,300 million
  • GDP – $3.197 trillion (5th largest economy in the world, the largest in Europe)
  • GDP per capita – $41,513
  • Currency – Euro
  • Capital – Berlin (population: 3,292,365)
  • Government – Federal parliamentary constitutional republic
  • President – Joachim Gauck; Chancellor – Angela Merkel; President of the Bundestag – Norbert Lammert: President of the Bundesrat Winfried Kretschmann