The Federal Statistical Office (Destatis) published better than expected data for the German economy in the second quarter on Thursday.
Despite inflationary pressures and Russia’s war on Ukraine, there was a modest, surprising rise in energy costs and fears of impending supply disruptions that led to the crisis.
A press release from Destatis states: “The price-, seasonally and calendar-adjusted gross domestic product (GDP) in the first quarter of 2022 rose by 0.1% in the second quarter of 2022 and was thus at the pre-crisis level.” Has come back. Fourth Quarter 2019.”
Household and government spending supported modest adjusted growth.
“Despite sharp price increases and the energy crisis, consumers have seized the opportunity to travel and go out more,” notes Destatis due to the end of most COVID-19 restrictions.
What does the Office for Statistics say about the economy?
GDP grew year-on-year, with an increase of 1.7% in the second quarter of 2022 compared to the same quarter last year.
Foreign trade also rose overall, although exports to Russia took a hit in the second quarter as sanctions came into effect after Russia’s decision to invade Ukraine in the first quarter.
However, much of this foreign trade balance was offset by an increase in imports over the same period.
According to Destatis, the gross value in the construction industry also fell by 2.4%.
The Federal Statistical Office found that households were spending more on durable goods than durable goods such as cars and household appliances, with Destatis attributing the drop in supply to a chain crisis.
German families were also feeling the effects of a health care crisis, as “care costs remained high and health insurance costs soared.”
AR/RT (DPA, Reuters)