The German economy is slow in gaining momentum. As reported by the Federal Statistical Office (Destatis), Germany's gross domestic product (GDP) in the first quarter of 2010 rose by 0.2 percent as compared to the previous quarter upon price, seasonal and calendar adjustment.
At the same time, the result for the fourth quarter of 2009 was corrected upwards slightly, now also showing a 0.2 percent increase. Although the upward trend observed for the German economy in the second (+0.4 percent) and third quarter of 2009 (+0.7 percent) slowed down slightly, it continued despite the relatively cold and long winter.
When compared with a year earlier, the GDP increased, following the slump recorded a year ago. The price-adjusted GDP in the first quarter of 2010 was up by 1.7 percent year on year (calendar-adjusted: +1.6%).
In a quarter-on-quarter comparison (adjusted for price, seasonal and calendar variations), a positive contribution was made, among other things, by capital formation in machinery and equipment and by exports. Also, the building of inventories and the increase in government final consumption expenditure contributed to offsetting the negative influence of capital formation in construction, final consumption expenditure of households, and imports.