German GDP Growth Confirmed at 0.3% in Q4


The German economy grew a seasonally-adjusted 0.3 percent in the fourth quarter of 2015, the same pace as in the preceding quarter and matching preliminary estimates. An expansion in household and government spending and investment offset a downward effect of foreign trade.

Quarter-on-quarter, private consumption grew by 0.3 percent, as compared to a 0.6 percent growth in the preceding quarter. Public consumption rose 1.0 percent, following a 0.5 percent growth in the September quarter. Overall consumption contributed 0.3 percentage points to growth. Gross fixed capital formation advanced by 1.5 percent, following a 0.1  percent increase in the previous three months. Investment in construction grew the most by 2.2 percent (after contracting 0.2 percent in the third quarter), followed by machinery and equipment investment (+1.0 percent from +0.2 percent) and investment in other products (+0.7 percent from +0.6 percent). Exports dropped by 0.6 percent, following a 0.3 percent growth in the September quarter. Imports rose by 0.5 percent, as compared to a 1.1 percent rise in the previous three months. That brought a downward effect of the GDP (-0.5 percentage points). Inventories were up, adding 0.1 percentage points to growth.

Year-on-year, the GDP expanded by 2.1 percent following a 1.8 percent expansion in the previous quarter.  It is the fastest growth since the first quarter of 2014. Household final consumption rose by 1.6 percent, down from a 2.1 percent growth in the previous quarter. Government consumption expanded 2.7 percent, accelerating from a 2.3 percent growth in the September quarter. Gross fixed capital formation also grew sharply 4.2 percent (after a 2.2 percent expansion in the preceding quarter). Machinery and equipment investment grew the most by 6.3 percent, followed by construction (+3.3 percent) and other products investments (+2.7 percent) and construction investment (+0.8 percent). Overall investment added 0.9 percent to growth. In contrast, the reduction in inventories slowed down the GDP growth by 0.2 percentage points. The balance of exports and imports showed zero contribution to the year-on-year GDP growth.

For full year of 2015, the economy grew by 1.7 percent, as compared to a 1.6 percent expansion in the preceding year.

German GDP Growth  Confirmed at 0.3% in Q4


Destatis l Rida Husna | rida@tradingeconomics.com
2/23/2016 8:24:21 AM