First-quarter growth strongest in four years

24th May 2005, Comments 0 comments

24 May 2005, FRANKFURT - Germany's economy grew 1.0 percent in the first quarter of 2005 over the preceding quarter in the strongest rise in four years, but growth was exclusively driven by exports, the government said on Tuesday.

24 May 2005

FRANKFURT - Germany's economy grew 1.0 percent in the first quarter of 2005 over the preceding quarter in the strongest rise in four years, but growth was exclusively driven by exports, the government said on Tuesday.

Federal Statistics Office president Johann Hahlen said the domestic economy continued to show clear decline, but that export growth more than offset domestic contraction.

The final numbers for gross domestic product confirmed preliminary data released on 12 May which showed that Europe's largest economy had seen its strongest quarterly rise since the first three months of 2001.

Exports rose by 2.9 percent, while imports dropped 1.4 percent.

"Domestic uses, however, were down 0.6 percent on the previous quarter," Hahlen said.

In unadjusted terms, Germany's first-quarter GDP showed no growth over that of the first quarter of 2004. Adjusted for the number of days worked, annual first-quarter growth was 1.1 percent.

The workforce at 38.6 million in the first quarter was up by 203,000 - 0.5 percent - from the same 2004 period.

By sector, the strongest performance came from financial, renting and business services which showed a 1.7 percent year-on-year rise in the first quarter. Trade and transport grew by 0.7 percent and manufacturing, including energy, grew by 0.6 percent.

DPA

Subject: German news

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