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Macroeconomic outlook report: Germany

First quarter of 2019

During the first quarter of 2019, Germany's GDP accelerated by 0.05 p.p. in its year-over-year growth rate, to 0.69%. This was mainly due to the performance of external demand, boosted by the higher growth in exports. In the labor market, unemployment rate fell by 0.10 p.p. to 3.20%, while the year-over-year growth rate of employment slowed by 0.11 p.p. to 1.07%. Inflation registered a rate of 1.37%, 0.62 p.p. below the rate registered on 4Q18. Finally, the euro kept at the same level against the US dollar, reaching an exchange rate of 1.14 $/€, which was the same exchange rate than the registered in 4Q18.

Macroeconomic overview

  • During the first quarter of the year, the German economy recorded an acceleration in its year-over-year GDP growth rate of 0.05 p.p. with respect to the previous quarter, to 0.69%. This behavior was mainly due to the performance of external demand, given the acceleration of exports. 
  • Domestic demand decelerated by 0.16 p.p. when compared to the previous quarter, to a year-over-year growth rate of 1.76%.
  • In the labor market, the unemployment rate fell by 0.10 p.p. until reaching 3.20% and the year-over-year growth rate of employment slowed by 0.11 p.p. compared to the last quarter of 2018, to 1.07%.
  • The euro kept at the same level against the US dollar, reaching an exchange rate of 1.14 $/€, which was the same exchange rate than the registered in 4Q18.
  • Inflation stood at 1.37% during the first quarter of 2019, following a deceleration of 0.62 p.p. from the previous quarter. This was mainly due to increases in energy prices.

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© GMS Management Solutions, S.L., 2019. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.