German gross domestic product grew to 1.70% in 2015 compared to 2014’s 1.60% according to the Federal Statistical Office. The boost from domestic consumption has helped the country to grow at a time when the export economy is struggling, recording the best performance since 2011. Household spending rose 1.90% over the year compared with 2014’s 0.90% gain whereas government consumption also rose from last year’s 1.70% to 2.80%. Imports outstripped exports in the latest reading, printing at 5.70% and 5.40% respectively. Industrial production, excluding construction, accounts for more than 25% of total GDP, advancing by 2.20% in 2015 whereas construction itself reported a 0.20% rise. Employment was up by 0.80%, helping to increase domestic spending with record low unemployment and steadily rising wages aided by cheaper energy prices and record low interest rates implemented by European Central Bank.
BoE Policy Unchanged
Daily Analysis - 15/01/2016