German economy grows for second consecutive year
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The German economy grew by 3% in 2011, broadly in line with expectations but less so than during 2010.
The Federal Statistics Office has released the preliminary figures today, demonstrating that while the economy grew faster than at its pre-crisis level, growth still fell short of the 3.7% recorded for 2010.
Domestic consumption was one of a strongest contributors to growth, reports the Federal Statistics Office. Household consumption levels increased by 1.5%, representing the highest growth rate in five years.
German exports rose by 8.2%, year-on-year, while imports grew moderately slower at 7.2%.
There are concerns that these latest figures are indicative of an economic slowdown in the fourth quarter, which could push Germany into recession.
David Miller, a partner at Cheviot Asset Management, says: “Germany’s 3% growth for the year was respectable but the fourth quarter saw a marked slowdown, which hints at a possible shallow recession later this year.”
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