23.02.201802:33:00UTC+00Germany's GDP Expands As Estimated In Q4

Germany's economy expanded as initially estimated in the fourth quarter largely on foreign demand, detailed report from Destatis showed Friday.

Gross domestic product climbed 0.6 percent sequentially, slower than the 0.7 percent expansion seen in the third quarter. The rate came in line with the estimate published on February 14.

On a yearly basis, the calendar-adjusted GDP advanced at a faster pace of 2.9 percent, after rising 2.7 percent a quarter ago.

Similarly, price-adjusted GDP grew 2.3 percent versus 2.2 percent in the third quarter. Both annual growth rates matched initial estimate.

The expenditure-side breakdown showed that positive contributions to growth came mainly from foreign demand.

After rising 1.8 percent, exports increased substantially by 2.7 percent, contributing markedly to economic growth in the fourth quarter of 2017. Imports were up 2 percent on quarter in the same period.

As regards domestic demand, there were mixed signals. While household final consumption expenditure remained stable, government final consumption expenditure grew 0.5 percent.

Gross fixed capital formation in machinery and equipment gained 0.7 percent. However, gross fixed capital formation in construction declined 0.4 percent.

For the whole year of 2017, GDP advanced 2.2 percent compared to 1.9 percent in 2016.

Another report from Destatis showed that net lending of general government totaled EUR 36.6 billion in 2017. In absolute terms, this was the highest surplus achieved by general government since German reunification. The surplus ratio of general government was +1.1 percent.