Germany Quarterly GDP growth 0.4%

Since I was involved in developing the econometric model underyling the DIW Economic Barometer, I continue to follow how well it captures current developments. Last Friday (August 14) was another opportunity to juxtapose the indicator and the data. The first official number for Q2 2015 GDP growth from destatis is 0.4%. The econometric model underlying the DIW Economic Barometer indicated roughly this number. While the indicator is a unit-less index not tied to a specific value for GDP growth, my former colleagues put a price tag on the Q2 value of the indicator based on their own expertise that was 0.5%. Not bad I’d say!