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1.9 per cent is the magic number.
Germany’s growth and inflation rate held up at a bumper pace according to confirmed figures which point to growing economic momentum in Europe’s largest economy.
A second reading of Germany’s growth rate confirmed the economy expanded at its best pace since 2011 last year, at an annual pace of 1.9 per cent. GDP accelerated by 0.4 per cent in the last quarter, with growth supported by “significantly” higher government spending, said stats office Destatis.
Inflation meanwhile, which has surged to more than three-year highs, also clocked in at 1.9 per cent in January – another confirmed reading this morning.
Consumer prices have been pushed up across the continent by the climbing price of energy over the last three months, raising the prospect of a quicker-than-anticipated scaleback of monetary stimulus from the European Central Bank.
According to the latest figures from the European Commission, the German economy will slowdown to grow 1.6 per cent this year before accelerating to 1.8 per cent in 2018.
Destatis said the rising cost of imports weighed down on growth at the end of the year, as GDP expansion in the third quarter was revised down to a pace of 0.1 per cent from an original estimate of 0.2 per cent.
Chart via Bloomberg