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Macroeconomic outlook report: Germany

Second quarter of 2019

During the second quarter of 2019, Germany's GDP registered a deceleration of 0.36 p.p. in its y/y growth rate, which stood at 0.52%. This was mainly due to the performance of external demand, hampered by the lower growth in exports. In the labor market, unemployment rate fell by 0.10 p.p. to 3.10%, while the year-over-year growth rate of employment slowed by 0.05 p.p. to 1.02%. Inflation registered a rate of 1.70%, 0.33 p.p. above the rate registered on 1Q19. Finally, during the second quarter of 2019, the average $/€ exchange rate decreased with respect to 1Q19, by 0.01 p.p., amounting to 1.13 $/€.

Macroeconomic overview

  • During the second quarter of the year, the German economy recorded a deceleration in its year-over-year GDP growth rate of 0.36 p.p. with respect to the previous quarter, to 0.52%. This behavior was mainly due to the performance of external demand, given by the lower growth of exports.
  • Domestic demand experienced a lower growth rate than in 1Q19, of 1.50% after a 0.31 p.p. slowdown.
  • In the labor market, the unemployment rate fell by 0.10 p.p. until reaching 3.10% and the year-over-year growth rate of employment slowed by 0.05 p.p. compared to the first quarter of 2019, to 1.02%.
  • The nominal euro/dollar fell by 0.01 $/€ when compared to 1Q19 reaching an exchange rate of 1.13 $/€ in 2Q19.
  • Inflation stood at 1.70% during the second quarter of 2019, following an acceleration of 0.33 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.