Macroeconomic outlook report: Germany

First quarter of 2022

During the first quarter of 2022, Germany's GDP recorded an increase in its year-on-year change compared to the previous quarter, thus registering a year-on-year rate of 3.72%. This increase was due to the increase in the German industrial output, which was considerably higher compared with the fourth quarter of 2021, fostered by continued brisk demand for industrial products and an easing of supply bottlenecks. On the labour market, the unemployment rate decreased from the previous quarter to 3.07%, while the year-on-year change in employment increased to a rate of 1.54%. Inflation stood at 5.77%, having accelerated from the previous quarter. Finally, the euro depreciated against the US dollar, with an average exchange rate of 1.12 $/€ during the first quarter of the year.


Macroeconomic outlook report: Germany 1Q22

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Macroeconomic overview

  • During the first quarter of the year, the German economy recorded an increase in its y/y GDP variation rate of 1.95 p.p. compared to the previous quarter, down to a rate of 3.72%. The German industrial output was considerably higher compared with the fourth quarter of 2021.
  • Domestic demand registered an increase of 3.02 p.p. from the previous quarter to a rate of 5.98%. Regarding external demand, exports recorded a decrease of 4.06 p.p. from the previous quarter, registering a positive growth rate of 2.63%. Year-on-year growth in imports also decreased, with a variation of 3.72 p.p. to 7.24%.
  • With regards to the labour market, the unemployment rate declined from the previous quarter to a rate of 3.07%, while the year-on-year change in employment increased by 0.60 p.p. from the previous quarter to 1.54%.
  • The euro depreciated against the US dollar compared to the fourth quarter of 2022, recording an average exchange rate of 1.12 $/€ in 1Q22.
  • Finally, inflation stood at 5.77% during the first quarter of 2022, an increase of 0.74 p.p. compared to the previous quarter.

For more information, click here to access the executive document in pdf.