German Economy motoring on

With euro area finance ministers meeting to discuss the Greek debt issue there has been positive news with regard to the the overall growth in the euro economy. Driven by consumption (C) and Investment (I) the German economy grew by 0.7% in the Q4 which makes the annual figure 1.4% in 2014 – see graph below. This helped the overall growth rate of the euro zone area 0.3% in Q4. The German figure is surprising when you think of the economic sanctions against Russia which has hit hard the German export market (X) – export volumes contracted 2% in Q4 in 2014. By contrast the DAX (German Stock Market indicator) recorded an all time high of 11,013 and German real wages rose 1.6% which was helped by falling oil prices.

Other euro areas didn’t do as well as their German counterparts but the important fact was that figures were more optimistic and better than expected for Q4 2014:
Slovakia +2.4%.
France +0.1%

Spain +0.7%,
Netherlands +0.5%,
Portugal +0.5%
Italy 0%,
Greece -0.2%.

Euro Zone GDP 2014

Source: National Australia Bank

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