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You can find the current article at its original source at https://www.theguardian.com/business/live/2020/feb/14/german-economy-stagnates-growth-eurozone-gdp-business-live
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| German economy stagnates with no growth in last quarter - business live | German economy stagnates with no growth in last quarter - business live |
| (32 minutes later) | |
| Rolling coverage of the latest economic and financial news, including the latest eurozone growth figures | Rolling coverage of the latest economic and financial news, including the latest eurozone growth figures |
| Stagnation is bad, but there’s some relief that Germany didn’t do even worse. | |
| Oliver Rakau of Oxford Economics feared German GDP could actually have contracted in the last quarter, given recent weak data: | |
| Bloomberg’s Fergal O’Brien agrees: | |
| But currency analyst Marc-André Fongern is concerned about Germany’s prospects this year, given the coronavirus outbreak will hurt its manufacturing base. | |
| 2019 was not a great year for Germany. | |
| Today’s GDP report shows that the economy grew by 0.5% in January-March, only to shrink by 0.2% in April-June. Growth picked up by 0.2% in July-September, before fizzling out in the last quarter. | |
| Good morning, and welcome to our rolling coverage of the world economy, the financial market, the eurozone and business. | Good morning, and welcome to our rolling coverage of the world economy, the financial market, the eurozone and business. |
| Newsflash: Germany’s economy is flatlining, as a slowdown in spending and exports wipes out growth. | Newsflash: Germany’s economy is flatlining, as a slowdown in spending and exports wipes out growth. |
| Figures just released show that German GDP was unchanged in the fourth quarter of 2019. Economists had expected a rise of 0.1%, so this is disappointing (and matches the UK’s own performance in Q4). | Figures just released show that German GDP was unchanged in the fourth quarter of 2019. Economists had expected a rise of 0.1%, so this is disappointing (and matches the UK’s own performance in Q4). |
| On an annual basis, the German economy only grew by 0.6% during 2019, Destatis adds. That’s a very weak result, as Europe’s largest economy struggles to handle trade tensions, changes in the auto industry, and a slowing European economy. | On an annual basis, the German economy only grew by 0.6% during 2019, Destatis adds. That’s a very weak result, as Europe’s largest economy struggles to handle trade tensions, changes in the auto industry, and a slowing European economy. |
| It’s not all gloom -- growth in the third quarter has been revised up to 0.2%. But the general picture is weak: | It’s not all gloom -- growth in the third quarter has been revised up to 0.2%. But the general picture is weak: |
| Destatis, Germany’s statistics body, reports that household and government spending both slowed in the last quarter, while investment from companies was mixed. | Destatis, Germany’s statistics body, reports that household and government spending both slowed in the last quarter, while investment from companies was mixed. |
| Donald Trump’s trade wars also hurt Germany. Destatis reports that German exports were “slightly down” in the last quarter, while imports of goods and services increased. | Donald Trump’s trade wars also hurt Germany. Destatis reports that German exports were “slightly down” in the last quarter, while imports of goods and services increased. |
| Later today we’ll get an updated reading on eurozone GDP for the last quarter. Preliminary figures release last month showed that the region only grew by 0.1%, with France and Italy shrinking. | Later today we’ll get an updated reading on eurozone GDP for the last quarter. Preliminary figures release last month showed that the region only grew by 0.1%, with France and Italy shrinking. |
| More to follow! | More to follow! |
| The agenda | The agenda |
| 7am GMT: German GDP for October-December 2019, first estimate | 7am GMT: German GDP for October-December 2019, first estimate |
| 10am GMT: Eurozone GDP for October-December 2019, second estimate | 10am GMT: Eurozone GDP for October-December 2019, second estimate |