German economy grows 1.7 per cent in 2015
The gross domestic product (GDP) of Germany rose 1.7% in 2015, slightly more than the previous year, reported the Federal Office of Statistics Destatis.
“We’re projecting a continuation of the moderate growth trend this year, as well”, he said, forecasting annual average growth of 1.8 percent. The outcome is in line with the expectations of the German government and the Bundesbank. The resulting balance of exports and imports made a relatively small 0.2 percentage point contribution to GDP growth. Growth in advanced economies will accelerate, while emerging Asia will slow, the International Monetary Fund said in its October outlook.
The economy expanded by 0.3 percent in the third quarter. Long time, foreign trade was the only driver of the economy. Government-spending growth accelerated to 2.8 percent from 1.7 percent, expanding at the fastest pace since the 2009 recession. In 2014, the GDP growth rate had been similar (+1.6%), while in 2013 it had been just +0.3%. The first estimate is due from Destatis on February 12.
Though Statistical Office official Norbert Raeth estimated that fourth-quarter growth came in at about a quarter of a percent, he cautioned that only around half of the data the office uses to calculate final quarterly readings are available so far.
But in a very rough estimate, Destatis said it was pencilling in growth of “about a quarter of a percent” for the last three months of 2015, compared with 0.3 percent in the preceding quarter.
“Looking ahead, the two-speeded recovery, with strong consumption and services on the one hand and sluggish industrial production and exports on the other hand, should continue in 2016”, the expert continued.
Schmieding of Berenberg said the risks to growth this year stemmed mainly from the political rather than the economic sphere, citing the risk of Britain, a major German trading partner, leaving the European Union.
“Concerns over China are somewhat overblown”, said Andreas Rees, chief German economist at UniCredit Bank in Frankfurt. Exports rose 5.4 percent while imports were up 5.7 percent. “And higher demand from elsewhere, chiefly the USA and the euro zone, will offset this decline”.