Germany’s GDP (gross domestic product) grew by 1.5 percent over the course of 2014. Last year, Germany reached unprecedented high employment and, for the third consecutive year, it achieved fiscal surplus thanks to domestic investment and demand.
The gross domestic product figure for 2014, which grew by 1.5 percent as experts foresaw, was much better than the previous year, when only a 0.4 percent growth was recorded. The number for last year was announced on Thursday by Destatis.
Also, Destatis stated that the fiscal surplus for last year was 0.4 percent of the gross domestic product, and that the general government net lending reached a commendable figure, second in rank after the unification of Germany, in 1990.
The first quarter of 2014, Germany’s economy had a good start, but was faced with some difficult times until June, when it escaped from a technical recession. In the last quarter, the economy continued to slowly grow. Economist Carsten Brzeski from the ING Bank declared that Germany grew economically by 0.3 percent QoQ in the third quarter, as the end results show.
Last year’s growth was the fastest since 2011, when Germany’s economy advanced by 3.6 percent. The ten year average for its economy is 1.2, so 2014 fiscal year outgrew that as well.
The biggest economy in the euro zone expanded massively in 2014 despite the troublesome global economic environment due to investments and demand from within the country, as Destatis President Roderich Egeler informed during a Berlin press conference. In 2013, domestic demand growth reached 0.7 percent, and in 2014 it improved to 1.2 percent. Also, private consumption grew 1.1 percent, more than the 0.8 percent recorded previously.
2014 was also good for investment. The previous two years have brought a shrinkage in the investments area, but it bounced back in 2014, growing by 3.1 percent. The capital gained from machinery and equipment also rebounded after the previous two years, reaching a rise of 3.7 percent. The construction sector also had a good year, with a growth of 3.4 percent.
3.7 percent growth was recorded in the exports sector, while imports also increased up to 3.3 percent. Production also has improved, as the construction sector gained 2.7 percent and in the industrial sector increased by 1.1 percent.
Employment in Germany climbed a record level for the eight consecutive year, and it rose to 42.7 million. The number of employed people grew by 371,000 people, or 0.9 percent more than 2013.
Image Source: The Guardian