Destatis: German economy in 2017: GDP 2.2% higher in 2017 than in the previous year

WIESBADEN 12-Jan-2018 — /EuropaWire/ — The economic situation in Germany was characterised by strong economic growth in 2017. According to first calculations of the Federal Statistical Office (Destatis), the price-adjusted gross domestic product (GDP) was 2.2% higher in 2017 than in the previous year. The German economy has grown for the eighth year in a row. Compared with the preceding years, the growth rate accelerated once again. In 2016 the GDP had already risen significantly by 1.9%, and by 1.7% in 2015. From a longer term perspective, German economic growth in 2017 exceeded the average growth rate of the last ten years (+1.3%) by almost one percentage point.

Upon calendar adjustment, the GDP growth rate was higher (+2.5%) because there were three working day less in 2017 than in the year before.

Domestic demand was the driving force
Positive contributions to growth were primarily provided by the domestic demand in 2017. Household final consumption expenditure rose by a price-adjusted 2.0% from the previous year, while government final consumption expenditure was up 1.4%. The increase in gross fixed capital formation, in particular, was above average in 2017 (+3.0%). Gross fixed capital formation in construction was up 2.6%. Gross fixed capital formation in machinery and equipment increased by a price-adjusted 3.5% on the previous year. Gross fixed capital formation in other fixed assets, which includes expenditure on research and development, also was 3.5% higher than one year earlier. Compared with 2016 there was a price-adjusted 3.6% increase in gross capital formation, which among gross fixed capital formation includes changes in inventories.

German exports continued to increase in 2017 on an annual average. Price-adjusted exports of goods and services were up 4.7% on the previous year. The increase in imports was larger (+5.2%) during that period. Arithmetically, the resulting balance of exports and imports contributed +0.2 percentage points to GDP growth.

Gross value added higher in almost all economic sectors
On the production side of the gross domestic product, almost all economic sectors contributed to the positive economic trend in 2017. Total price-adjusted gross value added rose 2.2% in 2017 on the previous year.

There were above-average increases in the service sector for information and communication (+3.9%) and for trade, transport, accommodation and food services (+2.9%). Substantial increases (+2.5 %) were also recorded for industry excluding construction, which accounted for just over a quarter of total gross value added. Construction showed an increase of 2.2 % compared with 2016.

Number of persons in employment at new record high
The economic performance in Germany was achieved in 2017 on an annual average by just under 44.3 million persons in employment whose place of employment was in Germany. This was the highest number since German reunification. According to first calculations, the number of persons in employment was roughly 638,000 or 1.5% higher in 2017 than a year earlier. This was the largest increase since 2007. It was due to a rise in employment subject to social insurance. Higher labour force participation and the immigration of foreign workers offset age-related demographic effects.

Government budgets with record surplus
General government recorded a surplus of 38.4 billion euros in 2017 which, according to provisional calculations, was the fourth consecutive year with a surplus at year-end. Measured as a percentage of the gross domestic product at current prices, this was a 1.2% surplus ratio of general government for 2017.

More detailed information on the national accounting results for 2017 is contained in the statement delivered at today’s press conference and in the accompanying material on “Bruttoinlandsprodukt 2017 für Deutschland“, which is available at www.destatis.de (only in German).

The results published last time in November 2017 for the years 1991 to 2016 have not been revised, as is always the case at this time of the year.

National accounts data may be accessed via the Federal Statistical Office (Destatis) website. More detailed results are published in Fachserie 18 “National Accounts”, Series 1.1 “First Annual Results“. The above and other publications can be downloaded from Publications. A detailed quality report on national accounts is also available.

>>> brief methodological description

Detailed documents relating to the press conference are available here (only in german).

For further information:
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SOURCE: Statistisches Bundesamt (Destatis)