German 1Q 2021 GDP Down 1.8% Q/Q, -3.1% Y/Y

25 May 2021

By David Barwick – FRANKFURT (Econostream) – German economic output fell a real, seasonally and calendar-adjusted 1.8% on the quarter in the first quarter of 2021, the German Federal Statistical Office announced on Tuesday.

On an annual basis, 1Q GDP was down a real 3.4% and a real, calendar-adjusted 3.1%.

All three numbers represent a downward revision of 0.1 from the preliminary results released on April 30.

The quarterly contraction followed growth of 8.7% in 3Q 2020 and 0.5% in 4Q 2020 and reflects the impact of the resurgence of the pandemic and the associated containment measures.

‘The continuing, and in part intensified, restrictions imposed to contain the coronavirus pandemic had a particularly marked impact on household final consumption expenditure at the beginning of the year’, the Statistical Office said.

Household final consumption expenditure fell a real, seasonally and calendar-adjusted 5.4% q/q in 1Q, while government expenditures were up 0.2%. Gross fixed capital formation in construction was up 1.1%, gross fixed capital formation in machinery and equipment was down 0.2%.

In trade, 3.8% higher imports easily offset 1.8% higher exports.