German Economy Expands by 2.7% In GDP

Larger foreign trade and increased consumer spending.

The German economy, the biggest in the 13-country eurozone, grew by 2.7% in 2006, much faster than originally estimated as a result of better-than-expected growth in the fourth quarter, official data showed on Feb. 13.

German gross domestic product (GDP) expanded by 2.7% in 2006, the fastest rate of growth since 2000, the federal statistics office Destatis said.

On a quarterly basis, GDP grew by 0.9% in the fourth quarter from the figure for the third quarter, up from 0.8% in the preceding three months.

On a 12-month basis, gross domestic product (GDP) expanded by as much as 3.5% in the period from October to December, compared with 2.6% in the preceding three months.

"Growth impulses came from both inside and outside Germany," Destatis said. "Extremely dynamic foreign trade made the bigger contribution to the economic recovery," the statement said. But "on the domestic side, increased consumer spending, alongside rising investment, also contributed to growth."

Copyright Agence France-Presse, 2007

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