Friday, November 28th-6.5°C
22246
23919

German economic growth rate slowed to 0.4 per cent last year, slightly short of expectations

BERLIN - The German economy, Europe's biggest, slowed down more than expected last year as other countries' financial troubles and a global economic downturn weighed on exports, official data showed Wednesday.

The growth rate of 0.4 per cent was the weakest since the German economy shrank in the wake of the global financial crisis in 2009 and compared with a 0.7 per cent expansion in 2012. Economists and the government had forecast growth of 0.5 per cent.

The Federal Statistical Office estimated that the economy grew by around 0.25 per cent in the fourth quarter compared with the previous three-month period — about the same as the third-quarter figure of 0.3 per cent. However, an official final-quarter growth number won't be released until Feb. 14.

Germany, unlike many other countries in the 18-nation eurozone, avoided recession as the continent struggled to put its debt crisis behind it. Still, the crisis hasn't entirely passed the country by, and last year's economic expansion was fueled entirely by domestic demand.

"The German economy suffered from the continuing recession in some European countries and from restrained growth of the global economy," statistical office head Roderich Egeler said as he presented the preliminary 2013 growth estimate. "The strong domestic demand could offset those factors only to a limited extent."

German exports grew by a feeble 0.6 per cent last year, following growth of 3.2 per cent in 2012. Imports were up 1.3 per cent, little-changed from the previous year's 1.4 per cent.

Private consumption, meanwhile, grew 0.9 per cent — slightly above the previous year's 0.8 per cent. Germans have benefited from a sustained period of low unemployment.

"Overall, we think that there is no reason for massive disappointment today," said Andreas Rees, economist at UniCredit. "When looking behind the sheer numbers, things were being put on the right track last year for 2014."

The economy is expected to pick up speed this year as the eurozone continues its recovery from recession, and the government's current forecast is for growth of 1.7 per cent in 2014. It has forecast that exports — a traditional strength of Germany, which has rejected criticism abroad of its foreign trade surpluses — will be stronger this year.

Germany had a very slight budget deficit of 0.1 per cent last year after turning to a surplus of 0.1 per cent in 2012, the statistical office said. Germany's public finances have been helped by strong tax income as the economy grows, and Chancellor Angela Merkel's government has pledged to stop new borrowing in 2015.

The Canadian Press


Read more Business News

24053


Recent Trending




Today's Market
S&P TSX14744.70-177.74
S&P CDNX741.87-13.53
DJIA17828.240.49
Nasdaq4791.63+4.312
S&P 5002067.56-5.27
CDN Dollar0.8756-0.0004
Gold1175.20-21.40
Oil66.15-7.54
Lumber329.40+1.40
Natural Gas4.295+0.144

 
Okanagan Companies
Pacific Safety0.145-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.27-0.07
Cantex0.04-0.005
Anavex Life Sciences0.1998+0.0288
Metalex Ventures0.06+0.02
Russel Metals29.91-0.79
Copper Mountain Mining1.94-0.18
Colorado Resources0.125-0.005
ReliaBrand Inc0.0134-0.0001
Sunrise Resources Ltd0.05+0.005
Mission Ready Services0.325+0.005

 
23744




FEATURED Property
21330351940 Horizon Drive
5 bedrooms 4 baths
$529,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Don't stop dreaming!

On Wednesday evening I drove through the Bow Valley in Alberta. It is my old home town... the first place Jackie and I moved to in 1988 when we emigrated. We ended up setting up home there and living...


Second marriage issues

It is not unusual that one or both of the parties planning to marry are approaching marriage for the second time. There are pluses and minuses to this new situation. On the plus side, individuals ente...


The last great Canadian tax shelter

A guide to how flow-through fund limited partnerships can mightily aid your tax planning!The end of the year will raise concerns among many professionals, self-employed persons, business owners and ev...

_



24207

24231


Member of BC Press Council


23087