German government released a statement to the press stating that the GDP of Germany has increased above initial estimates. The economy has grown in 2015 by 1.7% which is 1% over the previous year and 1.4% compared to 2013. And it was well above the ten year average of 1.3%.
Germany has seen growth in most industries and the service sector except for construction even though construction was thought to have done better because the weather was fair all year and the conditions were prime for this sector of economy. Construction has done very well in 2014, but in 2015 it saw a slight decrease in production of -0.2%.
Germany news 2016: Germany GDP
Imports and exports were relatively close and did not contribute a great amount to the growth of Germany GDP at only 0.2 percentage points. But the employment rate in Germany performed very well. Germany saw a growth in employment, namely, 329,000 persons were employed in 2015, which means a continued growth of the economy as more and more Germans return to work. Mind that these figure are estimates, so the employment rate could be even higher.
Oil prices fell in the country to € .90 a liter due to the fall of oil prices worldwide. But Germany now boasts lower oil prices than Belgium and France. It is lower than those of all nine of the countries that neighbor it except for Austria and Luxembourg. This means cheaper production and transportation costs, which effectively boost the economy and give it a more competitive edge. But there are concerns as to how this will affect the environment as many cars that are high in petrol consumption are being bought by German consumers.
Germany also lent 16.4 billion euros this year which contributed 5 percentage points to the Germany GDP. And as in recent years Germany is boasting a surplus in its government spending, according to recent calculations, Germany may be one of the very few European economies that see a decrease in its sovereign debt ratio.
Looking into the export/import ratio Germany continued to improve its exports and gained 5.5% on year, thus exports contributes to a total of 41.7% of Germany GDP.
Germany News 2016: German stock market
Even though the economic status of the country is positive, German stock market prices responded negatively to the overall European financial situation. The latest news of 2015 brought some turmoil and banking stocks as well as many other major German assets turned downwards. But the medical and utualities sector, showed some slight improvement. Pharmaceutical company Merck and utilities company RWE's stock moved up just under a percentage point in trading. While Henkel experienced a huge loss of 4.11 percentage points. And Deutsche Bank plunged 3.28%.
Finally, taking into account the general crisis within the EU, Germany seems to be leading the pack of European countries and is one of the very few who saw a real reverse in fortunes in 2015. The German Fed is lending strongly and supporting the Euro currency like no other central bank.