German fourth quarter GDP growth confirmed at 0.3%

Germany’s gross domestic product rose 0.3% in the fourth quarter, in line with the third quarter, the initial estimate and consensus forecasts, data released by Destatis showed.

In calendar-adjusted terms, GDP grew 1.3% on the year compared with 1.7% in the third quarter, while unadjusted GDP grew 2.1% on the year. For 2015 as a whole, GDP increased 1.7%.

Pantheon Macroeconomics said “surging construction investment and government spending were the key drivers of the rise in GDP, offsetting a significant drag from net exports”.

“Exports fell 0.6% while imports rose 0.5% confirming that net trade, once again, was a severe drag on the headline. In terms of contributions to the rise in GDP, domestic demand added 0.8 percentage points, but net exports subtracted a significant 0.5pp.”