13 Feb 2015
Strong German growth comeback in 4Q 2014 – ING
FXStreet (Barcelona) - Carsten Brzeski of ING, reviews today’s German Q4 2014 GDP data release, noting that domestic demand is likely to be the major driver behind the strong German growth.
Key Quotes
“The German economy ended a volatile year on a very strong note. According to the statistical office’s first official estimate, the economy grew by 0.7 % QoQ in the final quarter of 2014. This is more than the first estimate for the annual growth number had suggested.”
“Compared with the last quarter of 2013, the economy grew by 1.6%.”
“Details of 4Q GDP will only be published at the end of the month but available monthly indicators and the statistical office’s statement suggest that domestic demand was the main growth driver. A clear sign that lower oil prices have found their way into consumers’ pockets.”
“Looking ahead, the German economy looks set to continue surfing on a wave of economic well-being.”
“With the strong labour market, wage increases, low energy prices and extremely low interest rates, consumers should continue to spend it.”
“At the same time, the weak euro will definitely benefit German exports, letting them return as a growth engine.”
“With a statistical overhang of 0.5%, less public holidays and the external stimulus package our current GDP growth forecast of 1.5% for 2015 looks almost pessimistic.”
Key Quotes
“The German economy ended a volatile year on a very strong note. According to the statistical office’s first official estimate, the economy grew by 0.7 % QoQ in the final quarter of 2014. This is more than the first estimate for the annual growth number had suggested.”
“Compared with the last quarter of 2013, the economy grew by 1.6%.”
“Details of 4Q GDP will only be published at the end of the month but available monthly indicators and the statistical office’s statement suggest that domestic demand was the main growth driver. A clear sign that lower oil prices have found their way into consumers’ pockets.”
“Looking ahead, the German economy looks set to continue surfing on a wave of economic well-being.”
“With the strong labour market, wage increases, low energy prices and extremely low interest rates, consumers should continue to spend it.”
“At the same time, the weak euro will definitely benefit German exports, letting them return as a growth engine.”
“With a statistical overhang of 0.5%, less public holidays and the external stimulus package our current GDP growth forecast of 1.5% for 2015 looks almost pessimistic.”