German growth jumps in 2014
January 15, 2015
According to new figures released by the German statistics office, Destatis, on Thursday, gross domestic product (GDP) in Europe's biggest economy grew 1.5 percent in 2014.
The growth rate for the year was above the average of the last ten years of 1.2 percent, Destatis noted, and followed rather moderate rates of expansion of 0.1 percent in 2013 and 0.4 percent in 2012.
"Obviously, the German economy turned out to be strong in a difficult global economic environment, benefiting especially from a strong domestic demand," Destatis President Roderich Egeler told a news conference in Berlin.
Domestic consumption was the main driving force for growth, Destatis figures showed, with household spending rising most significantly at a price-adjusted rate of 1.1 percent. Government expenditure was up 1 percent in 2014, while spending on capital goods increased 3.7 percent on a year earlier.
Destatis President Roderich Egeler also noted that foreign trade in 2014 was more dynamic than in the previous year, with exports of goods and services rising by 3.7 percent and imports increasing 3.3 percent.
Improvement across the board
In broken-down figures, almost all sectors in the economy contributed to the rise in German output. Especially in construction, a sharp 2.7 percent rise in economic performance was recorded for 2014, with Destatis citing the mild weather in the winter months as the main reason.
Industry, which accounts for a good quarter of total gross value added, was markedly up, too at a plus of 1.1 percent. Positive development was also observed by Destatis in the services sector.
In 2014, employment reached a record level with 42.7 million Germans having a job, and marking the eighth consecutive year of rising employment. Labor productivity, however, remained almost unchanged in 2014.
As a result of robust growth and stable employment, German public finances - including central, regional and local governments as well as social security funds - recorded a surplus of 11.9 billion euros ($14 billion), or a plus of 0.4 percent when compared with GDP.
uhe/sgb (AFP, dpa, Reuters, AP)