The German economy grew by 2.2% in 2017 after the 1.9% growth in the previous year, according to preliminary estimates by the Federal Statistical Office Despatis. This is the fastest rate of growth since 2011, with the economy feeling strongly supported by household consumption and investment in machinery and equipment. Raising government spending and building growth also contribute to GDP.
But economists expect a slightly higher GDP growth of 2.4%.
From a production point of view, almost all sectors contribute to the positive trend. This is especially clear for the industry, which is expanding by 2.5%. The sector represents over a quarter of the gross value added for the economy.
The production growth has reached a level that has not been observed since 2011. Supporting it is a record high for fast-growing new export orders. At the same time, however, this leads to a delay in supply.
Most new export orders are made by German producers from Asia and the United States, followed by European countries. The expansion of the manufacturing sector in the largest economy in Europe also affects the level of employment in the country, with the number of jobs in the factories rising.
Germany’s strongest annual growth rate was 7.2% in the first quarter of 1973, with the sharpest decline recorded in the first quarter of 2009 – 6.8%.
At present, there is a real boom in Germany amid the best macroeconomic data across the Eurozone over the last twenty years thanks to the increase in global demand.