German fourth quarter GDP in line with expectations

Gross domestic product in Germany grew 0.3% in the fourth quarter, in line with the previous quarter and economists’ expectations, according to data from Destatis.

“In a quarter-on-quarter comparison (adjusted for price, seasonal and calendar variations), positive contributions were made by domestic demand again. General government final consumption expenditure was markedly up, while household final consumption expenditure rose slightly again,” Destatis said.

The overall rate of growth for 2015 was 1.7%, while unadjusted figures showed the economy grew 2.1% on the year, just missing economists’ expectations for 2.3%.

“A surprisingly strong report, with government spending and construction likely the key drivers of the increase in GDP, offsetting weakness in manufacturing, net exports and consumers’ spending,” said Pantheon Macroeconomics.