News ID: 237377
Published: 1134 GMT January 15, 2019

German economy grew 1.5% in 2018, weakest rate in five years

German economy grew 1.5% in 2018, weakest rate in five years
KIRSZTIAN BOCSI/BLOOMBERG

Germany's economy witnessed lackluster growth in 2018, according to flash data released Tuesday, in line with expectations.

German gross domestic product (GDP) grew 1.5 percent in 2018, compared with 2.2 percent in 2017, the latest data from the Federal Statistics Office (Destatis) showed, CNBC wrote.

The figures point to the weakest rate of growth in five years.

Destatis noted that the German economy had grown for the ninth year in a row, "although growth has lost momentum."

"In the previous two years, the price adjusted GDP had increased by 2.2 percent each. A longer-term view shows that German economic growth in 2018 exceeded the average growth rate of the last ten years (+1.2 percent)."

The data body also said positive contributions to growth came mainly from domestic demand in 2018.

"Both household final consumption expenditure (+1.0 percent) and government final consumption expenditure (+1.1 percent) were up on the previous year. However, the growth rates were markedly lower than in the preceding three years," it said.

There had been indications that the economy had slowed in the second half of 2018. GDP data released in November showed that the economy shrank in the third quarter, by 0.2 percent, marking the first time Germany's economy had contracted since the first quarter of 2015.

Growth took a hit then due to a decline in exports and what Destatis said were ‘mixed signals’ in terms of domestic demand.

Data released last week also showed that German industrial production declined 1.9 percent month-on-month in November, coming in way below a consensus for growth of 0.3 percent.

 

 

   
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Resource: CNBC
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