German Economy Steady
12 February 2016 - 07:20PM
Dow Jones News
FRANKFURT—Robust domestic consumption kept Germany's economy on
a steady yet modest growth path at the end of last year, despite
weak exports and growing headwinds from the global economy,
official data showed Friday.
Germany's gross domestic product grew at a quarterly rate of
0.3% in the fourth quarter—the same rate as in the previous quarter
and in line with economists' forecasts, data from Germany's
statistical office showed.
Germany kicks off a day of gross domestic product data from
across the eurozone on Friday. Some economists warned that the
eurozone economy might have already lost steam at the end of last
year, as deteriorating prospects for the global economy cast doubt
on its growth outlook.
Germany's statistics office said that net trade weighed on
growth in the final three months of 2015, as goods exports were
down from the third quarter—a sign that companies were feeling the
pinch from weak demand from China, Russia and other large
developing economies.
Domestic consumption, however, supported Europe's largest
economy at the end of last year, Destatis said. Household spending
rose again, albeit slightly, in light of a buoyant labor market and
rising wages, while falling energy and fuel prices boosted
disposable income. Public spending picked up markedly, Destatis
said, with the government struggling to accommodate a record influx
of migrants.
Moderate growth in Germany and slower growth in France—its GDP
grew by just 0.2% in the final three months of last year compared
with 0.3% in the third quarter—raises questions about the health of
the wider eurozone at the end of 2015.
Economists polled by The Wall Street Journal last week forecast
that the eurozone economy grew at a quarterly rate of 0.3% in the
fourth quarter, unchanged from the third quarter. But a string of
weak national industrial production data released earlier this week
have increased the chances of a weaker outcome. The European Union
statistics agency is due to publish flash GDP data at 10:00 GMT
Friday.
Write to Nina Adam at nina.adam@wsj.com
(END) Dow Jones Newswires
February 12, 2016 03:05 ET (08:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.