World economy boosts German growth rate

13th January 2005, Comments 0 comments

13 January 2005, WIESBADEN - Germany's economy grew by 1.7 percent in 2004, in a robust upturn from the year before thanks to strong exports, but the state's finances continued to break the European Union's monetary stability rules, the government said on Thursday. The Federal Statistics Office in Wiesbaden said that the gross domestic product (GDP) upturn last year figure came on strong exports as German firms benefited from the world economic recovery, while jobs and private consumption remained problem

13 January 2005

WIESBADEN - Germany's economy grew by 1.7 percent in 2004, in a robust upturn from the year before thanks to strong exports, but the state's finances continued to break the European Union's monetary stability rules, the government said on Thursday.

The Federal Statistics Office in Wiesbaden said that the gross domestic product (GDP) upturn last year figure came on strong exports as German firms benefited from the world economic recovery, while jobs and private consumption remained problem areas.

"Overall, the German economy clearly revived in 2004," statistic office president Johann Hahlen said at a press conference. "But above all the job market and weak domestic demand remained problematic."

The 1.7 percent GDP growth came after the German economy had shrunk by 0.1 percent in 2003 and was the strongest showing since the 2.9 percent upturn recorded in 2000.

But the office said that Germany's state deficit, at 3.9 percent of GDP, far surpassed the European Union's monetary stability limits of three per cent for the third year in a row.

Altogether, the federal, state and communal governments spent EUR 84.5 billion more than they earned.

The 3.9 percent deficit last year compares with the 3.8 percent figure in 2003 and 3.7 percent the year before that.

The office said the German growth in 2004 was due exclusively to export performance, which rose by 8.2 per cent as companies benefited from the upturn in the world economy.

Private consumption, by contrast, shrank by 0.3 percent, while capital equipment investments by companies increased a scant 1.2 percent.

DPA

Subject: German news

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