The Gross Domestic Product is a comprehensive measure of a Germany's overall production and consumption of goods and services. GDP serves as one of the primary measures of overall economic well-being. GDP announcements generally conform to expectations as the number comes out after most German production reports have already been released. Although releases that are out of line with expectations are rare, unanticipated GDP growth can move markets simply because of its significance as an economic indicator.

Robust GDP growth signals a heightened level of economic activity and often a higher demand for the domestic currency. At the same time, economic expansion raises concerns about inflationary pressures which may lead monetary authorities to increase interest rates. Thus better than expected GDP figures are generally bullish for the Euro, while negative readings are generally bearish.

Technically, Gross Domestic Product is calculated in the following way:

GDP = C + I + G + (EX - IM)
where
C = private consumption
I = private investment
G = government expenditure
EX = exports of goods and services
IM = imports of goods and services

The headline figure is the annualized percentage change in GDP.

Relevance: Tends to move markets on release
Release schedule: 6:00 (GMT); quarterly, toward the end of the month
Source of report: Federal Statistical Office Germany
Web Address: http://www.destatis.de/indicators/e/iwf01.htm
Address of release: http://www.destatis.de/indicators/e/vgr111ae.htm
AKA: Gross Domestic Product, Real GDP, National Productivity, National Account