2018.08.2402:53:00UTC+00Germany's Q2 GDP Expands As Estimated

Germany's economy expanded at a faster pace as initially estimated on domestic demand in the second quarter, detailed data from Destatis showed Friday.

The largest euro area economy grew 0.5 percent sequentially, following the 0.4 percent increase in the first quarter. The rate came in line with the estimate released on August 14.

On a yearly basis, gross domestic product advanced at a faster pace of 2.3 percent after expanding 1.4 percent a quarter ago. Meanwhile, the calendar-adjusted GDP growth slowed slightly to 2 percent from 2.1 percent. Both annual rates matched expectations.

The expenditure-side breakdown of GDP showed that positive contributions mainly came from domestic demand.

Household spending rose 0.3 percent, slower than the 0.5 percent rise a quarter ago. Meanwhile, government spending rebounded 0.6 percent, in contrast to a 0.3 percent drop in preceding period.

At the same time, growth in gross capital formation increased to 2.6 percent from 0.9 percent. Overall, domestic uses increased markedly by 0.9 percent.

Exports recovered 0.7 percent, reversing a 0.3 percent fall in the first quarter. Likewise, imports climbed 1.7 percent after falling 0.2 percent.

Another report from Destatis revealed that net lending of general government amounted to EUR 48.1 billion in the first half of 2018. When measured as a percentage of the gross domestic product, this was a surplus ratio of 2.9 percent.