If imports is the sole positive growth contribution for GDP, that’s tantamount to production falling on goods and services but we don’t want to double-count the drop in spending of imported goods when calculating GDP, so it’s added back.
That’s what’s happening in the euro area. Fixed investment spending has dropped four consecutive quarters. Consumption grew in Q1 2013 but contributed just 0.04% to total growth following 5 consecutive quarters of contraction . Exports tumbled for two consecutive quarters, serving to drag growth -0.41% and -0.36%, respectively in Q4 2012 and Q1 2013. Over the last two quarters, imports has been the only consecutive positive contributor to GDP growth. Some heavy damage has been done in Europe by the austerity drive. Just thought you might want to see this.
