German Economy Stalls in Q4, Avoids Recession


The German economy stalled in the fourth quarter of 2018, missing market expectations of a 0.1 percent growth and following a 0.2 percent contraction in the July-September period, which was the first time GDP shrank since 2015.

Positive contributions mainly came from domestic demand as gross fixed capital formation increased markedly, especially in construction and machinery and equipment. Also, household final consumption expenditure rose slightly and general government final consumption expenditure was markedly up at the end of the year. However, development of foreign trade did not make a positive contribution to growth in the fourth quarter, as exports and imports of goods and services increased nearly at the same rate in the quarter-on-quarter comparison.

Year-on-year, the economy expanded a calendar-adjusted 0.6 percent in the fourth quarter, following a 1.1 percent growth in the previous three-month period. On an unadjusted basis, the GDP grew by 0.9 percent, slowing from  a 1.1 percent advance in the third quarter and marking the weakest yearly growth in six quarters.

German Economy Stalls in Q4, Avoids Recession


Destatis | Rida Husna | rida@tradingeconomics.com
2/14/2019 9:20:36 AM