The relatively strong economic growth momentum of the German economy continued with 2.5% growth in Q2, as most of the components of aggregate demand improved.
Germany’s bright economic outlook is being fueled by a relatively weak euro, a tight labor market, and strong consumer confidence. Working together they are boosting exports as well as consumer spending.
In addition, Germany earned a trade surplus last year which stood at almost $297bn (US), the world’s largest.
In contrast, China’s trade surplus was a mere $196bn.
Germany’s current account surplus (trade plus income flows) has kept growing even as the two nations perhaps most famous for their surpluses — China and Japan — have seen theirs shrink.
Last year, Germany current account surplus was a massive 8.6% of its GDP. It is often argued that Germany’s huge current account surplus has contributed to an unbalancing in world trade, a serious concern even recognized by Donald Trump.
German GDP is projected to expand 2.2% in 2017 and 2.1% in 2018. Germany’s economy expanded 1.9% last year.
Germany’s Year Over Year (Annual) GDP Growth Rate
