Germany: Economic growth broadly unchanged in Q4
February 14, 2018
According to preliminary data released by the Federal Statistics Office (Destatis) on 14 February, the German economy marginally lost steam in Q4. GDP rose a seasonally-, calendar- and price-adjusted 0.6% over the prior quarter, matching market estimates. The print came in just below the 0.7% quarter-on-quarter expansion clocked in Q3.
The expansion in the fourth quarter was driven by the external sector, with preliminary calculations showing that exports increased substantially in quarter-on-quarter terms. In addition, public consumption likely grew over the previous quarter in the surveyed time, at a broadly stable pace. Gross fixed capital formation is also expected to have increased in Q4 from the previous quarter, while capital formation in construction is expected to have dipped.
A year-on-year comparison showed that GDP grew a price-adjusted 2.3% in the fourth quarter, a slight improvement from 2.2% in the third quarter. For 2017, GDP growth came in at 2.2%, above the 1.9% expansion in 2016.
Germany GDP Forecast
FocusEconomics Consensus Forecast panelists see economic activity expanding 1.90% in 2018, which is up 0.1 percentage points from last month’s forecast. For 2019, the panel forecasts GDP growth of 1.70%.
Author: Jan Lammersen, Economist