German first-quarter GDP confirmed at 0.7%

German gross domestic product grew at 0.7% in the first quarter compared with 0.3% in the final quarter of last year, Destatis said on Tuesday, confirming its flash estimate earlier this month.

On the year, GDP was up 1.6%, also in line with the initial estimate.

Destatis said positive contributions came mainly from domestic demand, which helped to offset weaker trade.

Household final consumption expenditure increased by 1.8%, while government final consumption expenditure was up 2.7%. Gross fixed capital formation in machinery and equipment rose a price-adjusted 2.4% on the first quarter of 2015.

“German Finance Minister Wolfgang Schaeuble will be pleased to see strong GDP growth at a time when many major economies around the world are slowing down. A mild German winter encouraged shoppers to hit the street and spurned on additional construction activity,” said Dennis de Jong, managing director at UFX.com.

“Yet Schaeuble will know that however strong the German economy may seem at present, there are external factors that could derail the positive trend. Chief among those is the opinion of British voters, who go to the polls in one month to decide whether to stay a part of the EU.”