Germany’s economy expanded at a solid pace, as initially estimated, in the fourth quarter largely driven by foreign demand, detailed data from Destatis showed Friday.
Another official data showed that the largest euro area economy logged its biggest budget surplus in 2017 since the reunification in 1990.
Gross domestic product climbed 0.6 percent sequentially, but slightly 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 annually, after rising 2.7 percent.
Similarly, price-adjusted GDP grew 2.3 percent versus 2.2 percent a quarter ago. Both annual growth rates matched flash 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 in the same period.
As regards domestic demand, there were mixed signals. While the household final consumption expenditure remained stable, the 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.
Destatis reported 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.