Germany: GDP growth picks up in 2014
January 15, 2015
According to a preliminary estimate from the Federal Statistics Institute (Destatis), GDP expanded 1.5% in 2014. The reading marked an improvement compared to the 0.1% expansion registered in 2013 and represents the fastest GDP growth since 2012. The figure is still subject to revision; and more detailed data for 2014, including the Q4 results, will be released on 13 February.
The economy’s acceleration in 2014 came on the back of strengthening domestic demand and a recovery in the external sector. Domestic demand improved compared to 2013, driven by increased consumption and investment. Growth in private consumption accelerated from a 0.8% increase in 2013 to a 1.1% expansion in 2014. As in recent years, private consumption continued to contribute most to overall growth. Government spending grew 1.0% in 2014, coming in above the 0.7% increase tallied in 2013. Gross fixed capital formation rebounded from 2013’s 0.6% contraction to a 3.1% expansion in 2014.
Exports of goods and services increased 3.7% in 2014, which marked an improvement compared to the 1.6% expansion observed in 2013. Imports grew 3.3%, which was broadly in line with the 3.1% expansion registered in 2013. Given that exports’ growth outpaced imports’ growth, the external sector’s net contribution to overall economic growth rebounded from a 0.5 percentage-point detraction in 2013 to a 0.4 percentage-point contribution in 2014.