Germany’s economy – the fifth largest in the world and the largest in Europe – is a top exporter of machinery, vehicles, chemicals, and home goods, and it benefits from a highly skilled labor force. A look at the GDP composition on the expenditure side reveals that it is dominated by household consumption (55%), gross capital formation (20%, with 10% of that coming from construction, 6% from machinery and equipment, and 4% from other products), and government expenditure (19%). Approximately 46% of GDP is accounted for by exports of goods and services, with imports accounting for 39% and contributing 7% to total GDP.
A higher than expected figure should be seen as positive (bullish) for the EUR while a lower than expected figure should be seen as negative (bearish) for the EUR.
