German GDP Growth Confirmed At 0.4% In Q4


The German economy expanded a seasonally-adjusted 0.4 percent in the fourth quarter of 2016, compared to a 0.1 percent growth in the September qurter and matching preliminary estimates. Growth was supported by domestic demand and investment while net trade brought a downward effect.

Quarter-on-quarter, private consumption rose 0.3 percent, compared to a 0.2 percent growth in the three months to September. Public consumption advanced by 0.8 percent, up significantly from a 0.2 percent increase in the previous quarter. Overall consumption contributed 0.3 percentage points to growth. Gross fixed capital formation went up 0.8 percent, rebounding from a 0.2 percent contraction in the third quarter. Construction investment increased the most by 1.6 percent (from a 0.3 percent decline in Q3), followed by investment in other products (0.3 percent from 0.6 percent). In contrast, investment in machinery and equipment dropped by 0.1 percent (after a 0.5 percent decline in the third quarter). Exports rose 1.8 percent, compared to a 0.3 percent fall in the September quarter. Imports also went up 3.1 percent, much faster than a 0.4 percent growth in the previous three months. That brought a downward effect to the GDP (-0.4 percentage points). Inventories contributed 0.3 percentage points to growth.

Year-on-year, the GDP advanced 1.2 percent, slower than preliminary estimates of a 1.6 percent growth and a 1.5 percent expansion in the third quarter. It was the weakest expansion since the September quarter 2014. Household final consumption rose 1.5 percent, the same pace as in the previous quarter. Government consumption expanded 3.2 percent, down  from a 3.5 percent expansion in the September quarter. Overall consumption contributed 1.5 percentage points to growth. Gross fixed capital formation grew 0.1 percent (after a 1.4 percent expansion in the preceding quarter). Investment in other products rose the most by 2.5 percent, followed by construction (1.3 percent). In contrast, machinery and equipment investment fell 2.6 percent. Overall investment gave no contribution to growth. Changes in inveentories also showed no contribution to growth. The balance of exports and imports substracted 0.2 percentage points to the year-on-year GDP growth. 

Considering full 2016, the economy advanced 1.9 percent, the strongest in five years.

German GDP Growth Confirmed At 0.4% In Q4


Destatis l Rida Husna | rida@tradingeconomics.com
2/23/2017 8:48:15 AM