During the second quarter of 2022, German GDP recorded a decline in its year-on-year change from the previous quarter, thus registering a year-on-year rate of 2.56%. On the one hand, industry and construction output have picked up in recent months, with the removal of several coronavirus protection measures. In the labor market, the unemployment rate declined from the previous quarter to 3.00%, while the year-on-year change in employment increased to a rate of 1.67%. Inflation stood at 6.60%, having accelerated from the previous quarter, but is still lower than expected due to the discount on fuel and the "nine-euro" travel ticket, which were implemented at the beginning of June to dampen the inflation rate. Finally, the euro depreciated against the dollar, with an average exchange rate of 1.07 $/€ during the second quarter of the year.
Macroeconomic outlook report: Germany 2Q22
Macroeconomic overview
- During the second quarter of the year, the German economy recorded a decline in its year-on-year rate of change in GDP by 1.16 p.p. from the previous quarter, to a rate of 2.56%. German industrial production was considerably higher than in the first quarter of 2022.
- Domestic demand recorded a decline of 1.66 p.p. from the previous quarter to a rate of 4.32%. As for external demand, exports recorded a decline of 0.50 p.p. from the previous quarter, registering a growth rate of 2.13%. The year-on-year growth of imports also declined, with a 1.03 p.p. change to 6.21%.
- Turning to the labor market, the unemployment rate declined from the previous quarter to 3.00%, while the annual change in employment increased by 0.13 percentage points from the previous quarter to 1.67%.
- The euro depreciated against the US dollar compared with the first quarter of 2022, with an average exchange rate of 1.07 $/€ in the second quarter.
- Finally, inflation stood at 6.60% in the second quarter of 2022, an increase of 1.03 p.p. compared to the previous quarter.
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