Record level growth in Germany

Germany’s economy grew by 2.2% in the second quarter of the year, the highest quarter-on-quarter rate recorded since reunification two decades ago.

The Federal Statistical Office (Destatis) also reports the result for the first quarter of this year has been revised “substantially upwards”, now showing a 0.5% rise.

“Considering price, seasonal and calendar adjustment, both domestic and foreign demand made a positive contribution to growth”

Considering price, seasonal and calendar adjustment, both domestic and foreign demand made a positive contribution to growth.

Destatis says the trends seen in capital formation and foreign trade were among the strongest contributors to growth but household and government final consumption expenditure also had impacts.

Compared with a year earlier, GDP growth rose by 4.1% in the second quarter of 2010.

Germany also weathered last year’s crisis better than indicated in earlier figures. The comparatively large revisions to GDP are mainly owing to recently strong fluctuations in the short-term economic development, which have made estimations at the most recent end of the time series more difficult. (article continues below)

Earlier this week, Destatis published record numbers for imports and exports.

Germany’s imports rose by 31.7% in June year-on-year, the highest value reported since trade recordings began in 1950. Germany’s imports rose to €72.4 billion (£59.5 billion) in June while exports rose by 28.5% to €86.5 billion—the highest absolute export value of a month reported since October 2008.

Meanwhile the eurozone and the largest 27 largest countries in the European Union (EU27) saw economic growth of 1% during the second quarter compared with the previous three months, according to estimates by Eurostat, the statistical office of the European Union.

In comparison, growth rates were 0.2% during the first quarter.

Seasonally adjusted, the eurozone and the EU27 both grew by 1.7% in the same quarter of last year.