German Economy Grows In Q4
The German economy grew as expected by the end of 2017, largely demand driven by the abroad, to facilitate while the inflation continued in January, data from Destatis showed Wednesday.
Gross domestic product grew 0.6 percent quarter on quarter in the fourth quarter, in line with expectations, but slightly slower than the revised 0.7 percent expansion seen in the third quarter.
At the same time, the working-day-adjusted GDP advanced at a faster pace of 2.9 percent per year, after an increase of 2.7 percent. GDP growth of 3 percent.
Similarly, price-adjusted GDP grew by 2.3 percent compared to 2.2 percent in the previous quarter.
Positive contribution to the sequential growth came mainly from foreign demand. The government spending increases, while households ‘ final consumption expenditure remained roughly on the previous quarter.
Gross fixed capital formation in machinery and equipment was slightly up on the previous quarter, while capital formation in construction was easily said down, Destatis,.
Destatis reported a 2.2 percent growth for the whole year of 2017. The provisional annual GDP result was published in January, confirmed.
Commerzbank analyst J?rg Kr?mer said, the upswing in the German economy could not continue for another two or three years, despite the roll-back of labor market reforms because of the economic tensions on the labour market is yet in sight.
Eurostat to release GDP data for the euro area by 5: 00 PM ET. According to previous estimate, the currency bloc’s 0.6 percent expanded in the fourth quarter.
Destatis also confirmed that the EU slowed down harmonised inflation in Germany to 1.4 percent in January from 1.6 percent in December.
With inflation and wage growth still subdued in the euro zone, the largest and arguably strongest economy, the European Central Bank interest rate increases still seem like a pretty distant one, Jennifer McKeown, economist at Capital Economics, said.