The German economy, the biggest in the 12-country euro zone, expanded modestly in the first three months of the year, after stagnating in the preceding three months. But growth nevertheless fell short of expectations, official data shows today.
German gross domestic product (GDP) rose by 0.4% in the three months from January to March, compared with the period from October to December, the federal statistics office Destatis calculated in preliminary data.
Destatis said that growth impulses came from both inside and outside Germany. 'In addition to foreign trade, private consumption and investment in equipment also contributed to the pick-up in the economy at the start of 2006,' the statisticians said in a statement.
Nevertheless, first-quarter growth did not quite meet expectations - analysts had been pencilling in slightly stronger growth of 0.6%.
On a 12-month basis, however, German GDP expanded by 2.9% in the January-March period, the strongest rate of growth in six years, Destatis calculated.
That was largely due to calendar effects. Given the late timing of the Easter holidays this year, there were three more working days in the first quarter of 2006 than in the first quarter of 2005, the statisticians noted.
On a calendar-adjusted basis, German first-quarter GDP expanded by 1.4% year-on-year, they said.
