Germany’s growth weaker than expected in 2013

Economy skirted recession at start of 2013 before picking up steam from second quarter

The German national flag flies over the German finance ministry in Berlin. Germany has been a pillar of strength throughout the euro zone crisis but growth slowed to 0.7 per cent in 2012 . Photograph: Krisztian Bocsi/Bloomberg
The German national flag flies over the German finance ministry in Berlin. Germany has been a pillar of strength throughout the euro zone crisis but growth slowed to 0.7 per cent in 2012 . Photograph: Krisztian Bocsi/Bloomberg

The German economy grew by a weaker than expected 0.4 per cent in 2013, a preliminary estimate from the Federal Statistics Office showed today.

The reading compared with a consensus forecast in a Reuters poll of 18 economists for expansion in gross domestic product (GDP) of 0.5 per cent.

Germany has been a pillar of strength throughout the euro zone crisis but growth slowed to 0.7 per cent in 2012 and the economy skirted recession at the start of 2013 before picking up steam from the second quarter on.

Economists expect the German economy to crank up a gear this year, forecasting growth of between 1.2 and 2.0 per cent. (Reuters)