German economy continued to grow in 2018

Gross Domestic Product German economy continued to grow in 2018

The German economy grew in 2018 for the ninth year in succession. The Federal Statistical Office noted that growth, although slightly weaker, was 1.5 per cent compared to 2.2 per cent in 2016 and 2017.

1 Min. Lesedauer

Private consumption as well as construction and business sector investment were key to growth, although public consumer spending also contributed to the upswing.

Imports rose by 3.4 per cent, and thus more than exports (2.4 per cent), which did not increase as strongly as in previous years. This was, not least, due to various trade conflicts and problems in the car industry.

More people in employment

The number of people in employment rose to a new record high of an annual average of 44.8 million. That represents a year-on-year increase of 562,000 people.

The surplus generated by the federal government, federal states, local authorities and social security funds accounted for a total of 1.7 per cent of gross domestic product (GDP). In 2017 that figure stood at 1.0 per cent.

Forecast: Upswing set to continue in 2019

Economic research institutes and bank economists had latterly lowered their economic forecast for Germany, but they are now predicting that the upswing will continue throughout 2019.