German
Market Review
Quick Facts
Population (as at 30 June 2014)
80.9 million
GDP 2014
€
3.5 trillion
GDP Growth Rate 2014
1.6%
Unemployment
(as at January 2015)
4.8%
Inflation (CPI) (2014)
0.9%
Source:
Economic Overview
Germany’s economy has remained very resilient, despite
certain European wide economic indicators. In 2014,
Germany’s GDP recorded an increase of 1.5%
1
. In the last
quarter of 2014, the increase in GDPwas predominantly
backed by domestic demand and consumer spending
which rose by 1.1% year-on-year. In addition to this,
government spending was 1% higher year-on-year.
German companies invested 3.7% more in plant,
machinery and vehicles while construction spending
also rose by 3.4%. Moreover, the balance of imports
and exports also contributed to the rosy economic
outlook with an increase of 0.4% growth in GDP
in 2014. This was largely due to the exports of goods and
services which recorded a price adjusted uplift of 3.7%
year-on-year while imports increased by 3.3%.
Consumer Price Index (CPI)
The consumer price index inGermany increased by 0.9%
in 2014 compared to 2013. The Federal Statistical Office
(Destatis) reported that the increase on a year-on-year
basis has been declining since 2011 (2011: +2.1%; 2012:
+2.0%; 2013: +1.5%). A month-on-month comparison,
for the three consecutive months from October to
December 2014 showed that the CPI has remained
unchanged. This can be attributed to the decline in the
prices of energy products, consumables and electronic
products.
GERMANY CONSUMER PRICE INDEX (CPI)
107.2
107
106.8
106.6
106.4
106.2
106
105.8
Jan/14
105.9
107.2
107
106.8
106.6
106.4
106.2
106
105.8
Apr/14
Jul/14
Oct/14
Jan/15
106.4
106.7
106.5
106.4
106.7
107 107 107
106.7 106.7 106.7
1. Based on Bloomberg’s article, Germany lifts Economic Outlook as Oil, QE Spell Stimulus dated 28 January 2015.
IREIT Global
annual report 2014
