Press release No. 010 of 12 January 2017
WIESBADEN – The economic situation in Germany was characterised by solid and steady growth also in 2016. According to first calculations of the Federal Statistical Office, the price-adjusted gross domestic product (GDP) rose 1.9% on an annual average in 2016 on the previous year. In the previous two years, the level of GDP growth was similar (1.7% in 2015 and 1.6% in 2014). Examining the longer-term economic growth reveals that growth in 2016 was by half a percentage point higher than the average of the last ten years (+1.4%).
| 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|
| +3.7 | +3.3 | +1.1 | –5.6 | +4.1 | +3.7 | +0.5 | +0.5 | +1.6 | +1.7 | +1.9 |
In calendar-adjusted terms, the GDP growth rate was slightly lower (+1.8%) because, mathematically, in 2016 one working day more was available than in the previous year.
| 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|
| +3.9 | +3.4 | +0.8 | –5.6 | +3.9 | +3.7 | +0.7 | +0.6 | +1.6 | +1.5 | +1.8 |
The main factor contributing to the positive development of the German economy in 2016 was domestic uses. Household final consumption expenditure rose a price-adjusted 2.0% on the previous year. The increase in government final consumption expenditure (+4.2%) was markedly larger still. One of the reasons for this strong growth is that a large number of people seeking refuge immigrated, which resulted in considerable costs. Final consumption expenditure rose a total 2.5%. It was thus again the largest, though not the only pillar of German economic growth in 2016, as capital formation made some contribution, too. Price-adjusted gross fixed capital formation in construction rose a strong 3.1% in 2016, the main reason being higher gross fixed capital formation in dwellings. Also, gross fixed capital formation in machinery and equipment was up 1.7% on the previous year. GDP growth was slowed only by a reduction of inventories (–0.4 percentage points) in 2016. The balance of exports and imports of goods and services, too, had a slightly negative effect on GDP growth (–0.1 percentage points). Price-adjusted exports of goods and services were up 2.5% on the previous year; imports rose more strongly in the same period (+3.4%).
On the production side of the gross domestic product, all economic sectors contributed to the economic upturn in 2016. Total price-adjusted gross value added rose 1.8% on the previous year. Above-average development was recorded for construction, which grew a price-adjusted 2.8% year on year. In industry (excluding construction), which accounts for just over a quarter of total gross value added, the economic performance was up, too, though much more moderately (+1.6%). Marked increases were also observed in most service branches.
The economic performance in Germany on an annual average in 2016 was achieved by just under 43.5 million persons in employment whose place of employment was in Germany. This was the highest number since 1991. According to first provisional calculations, the number of persons in employment was by roughly 429,000, or 1.0%, higher in 2016 than a year earlier. Hence, the upward trend observed for the last ten years continued. Labour productivity (price-adjusted gross domestic product per hour worked by persons in employment) in 2016 was by 1.2% higher than in the previous year. Measured per person in employment, labour productivity rose by 0.9%.
The government budgets continued their consolidation in 2016. According to provisional calculations, general government – comprising central, state and local government and social security funds – recorded net lending of 19.2 billion euros at the end of the year. When measured as a percentage of the gross domestic product at current prices, this is a +0.6% surplus ratio of general government for 2016. For the third consecutive year, general government showed a surplus at the end of the year according to the most recent calculations.
| 2013 | 2014 | 2015 | 2016 | |
|---|---|---|---|---|
| Change on the previous year in % | ||||
| At current prices | ||||
| Final consumption expenditure of households and NPISHs | 1.8 | 1.8 | 2.6 | 2.6 |
| Government final consumption expenditure | 4.3 | 3.5 | 4.0 | 5.8 |
| Gross fixed capital formation (GFCF) | 0.4 | 5.0 | 3.2 | 4.0 |
| including: | ||||
| GFCF in machinery and equipment | –1.8 | 6.1 | 4.6 | 2.6 |
| GFCF in construction | 1.5 | 4.2 | 2.2 | 4.9 |
| D o m e s t i c u s e s | 2.6 | 2.8 | 2.6 | 3.2 |
| Exports | 1.3 | 3.9 | 6.3 | 1.5 |
| Imports | 1.5 | 2.5 | 3.9 | 0.7 |
| G r o s s d o m e s t i c p r o d u c t (GDP) | 2.5 | 3.5 | 3.7 | 3.3 |
| Gross national income | 2.5 | 3.3 | 3.7 | 3.3 |
| Net national income (factor costs) | 2.6 | 3.4 | 3.8 | 3.4 |
| Compensation of employees | 2.8 | 3.9 | 3.7 | 3.6 |
| Property and entrepreneurial income | 2.2 | 2.4 | 4.2 | 3.1 |
| Disposable income of households | 1.5 | 2.3 | 3.1 | 2.8 |
| Price-adjusted, chain-linked | ||||
| Final consumption expenditure of households and NPISHs | 0.7 | 0.9 | 2.0 | 2.0 |
| Government final consumption expenditure | 1.2 | 1.2 | 2.7 | 4.2 |
| Gross fixed capital formation (GFCF) | –1.1 | 3.4 | 1.7 | 2.5 |
| including: | ||||
| GFCF in machinery and equipment | –2.1 | 5.5 | 3.7 | 1.7 |
| GFCF in construction | –1.1 | 1.9 | 0.3 | 3.1 |
| D o m e s t i c u s e s | 0.9 | 1.4 | 1.6 | 2.2 |
| Exports | 1.9 | 4.1 | 5.2 | 2.5 |
| Imports | 3.1 | 4.0 | 5.5 | 3.4 |
| G r o s s d o m e s t i c p r o d u c t (GDP) | 0.5 | 1.6 | 1.7 | 1.9 |
| memorandum item: | ||||
| GDP per person in employment | –0.1 | 0.8 | 0.8 | 0.9 |
| GDP per hour worked by persons in employment | 0.8 | 0.4 | 0.8 | 1.2 |
| Gross value added, total | 0.5 | 1.5 | 1.6 | 1.8 |
| including: | ||||
| Industry, excluding construction | –0.4 | 5.0 | 1.6 | 1.6 |
| Construction | –2.3 | 1.4 | –0.2 | 2.8 |
| Contributions to growth of price-adjusted GDP in percentage points | ||||
| Final consumption expenditure of households and NPISHs | 0.4 | 0.5 | 1.1 | 1.1 |
| Government final consumption expenditure | 0.2 | 0.2 | 0.5 | 0.8 |
| Gross fixed capital formation (GFCF) | –0.2 | 0.7 | 0.3 | 0.5 |
| including: | ||||
| GFCF in machinery and equipment | –0.1 | 0.4 | 0.2 | 0.1 |
| GFCF in construction | –0.1 | 0.2 | 0.0 | 0.3 |
| Changes in inventories, and so on | 0.5 | –0.1 | –0.5 | –0.4 |
| Domestic uses | 0.9 | 1.3 | 1.5 | 2.0 |
| Balance of exports and imports (net exports) | –0.4 | 0.3 | 0.2 | –0.1 |
More detailed information on the national accounting results for 2016 is contained in the statement delivered by President Dieter Sarreither at the press conference today and in the accompanying material on "Bruttoinlandsprodukt 2016 für Deutschland", which is available at www.destatis.de (only in German).
On 14 February 2017, the Federal Statistical Office will publish first national accounting results for the fourth quarter of 2016 and the revised results for the year 2016 (only GDP). Detailed results will be released on 23 February 2017.
The results published last time in November 2016 for the years 1991 to 2015 have not been revised, as is always the case at this time of the year.
National accounts data may be accessed via the Federal Statistical Office (Destatis) website. More detailed results are published in Fachserie 18 "National Accounts", Series 1.1 "First Annual Results". The above and other publications can be downloaded from Publications. A detailed quality report on national accounts is also available.