German GDP surges 0.9%

German GDP growth surged to 0

German GDP growth surged to 0.9 per cent in the last quarter of 2006 on the back of booming exports and stronger domestic demand.

The unexpectedly robust performance, shown in preliminary Federal Statistics Office figures today, was the eighth consecutive quarter of expansion in Europe's largest economy, and implied growth in 2007 would prove better than anticipated.

The office said foreign trade had a much bigger share in the economic pick-up in the quarter, adding that domestically, higher investment and private consumption contributed to growth.

Full-year growth for 2006 in Germany was revised up to 2.7 per cent from a previous estimate of 2.5 per cent. In workday-adjusted terms, this equated to growth of 2.9 per cent, the office said.

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Growth during the July-September period was revised up to 0.8 per cent from a previous reading of 0.6 per cent.

Year-on-year, the economy grew by 3.7 per cent in the October-December period in workday adjusted terms, after expanding 3.1 per cent in the previous quarter.