The German economy continues to grow. In the second quarter of 2015, the gross domestic product (GDP) rose 0.4% on the first quarter of the year after adjustment for price, seasonal and calendar variations. France's GDP stagnated in the period.
Destatis, the German federal statistics office, reports that there had been a moderate GDPgrowth of +0.3% at the beginning of the year 2015, too. INSEE, the French national statistics office, reported that in Q2 2015, GDP in volume terms was stable: 0.0% after +0.7% in Q1 2015.
Destatis said that in a quarter-on-quarter comparison (adjusted for price, seasonal and calendar variations), positive contributions were made mainly by the balance of exports and imports. According to provisional calculations, exports increased much more than imports, one of the reasons for this development being the weak euro. "Especially exports of goods recorded a particular increase compared with the previous quarter. Both household final consumption expenditure and government final consumption expenditure continued to develop positively. However, growth was slowed by weak gross fixed capital formation. Compared with the first quarter, a decline in fixed capital formation was recorded especially in construction. Also, inventories were markedly reduced."
Economic growth accelerated year on year, too. The price-adjusted GDP was up by 1.6% in the second quarter of 2015, following +1.2% in the first quarter of 2015.
INSEE said household consumption expenditure decelerated sharply (+0.1% after +0.9%) while their total gross fixed capital formation (GFCF) decreased again (–1.6% after –1.1%). Non-financial corporations and general government investment also slowed down. Overall, total domestic demand (excluding inventory changes) decelerated strongly: it contributed for +0.1 points to GDP growth (after +0.6 points in Q1 2015).
Imports slowed (+0.6% after +2.2%) while exports accelerated (+1.7% after 1.3%). All in all, the foreign trade balance contributed positively to GDP growth (+0.3 points after –0.3 points). Conversely, changes in inventories contributed negatively: –0.4 points after +0.3 points in the previous quarter.