German Growth Led By Domestic Demand As Investment Climbs

The investment surge was much stronger than we and consensus had expected and bodes well for an investment-led expansion next year as well, said Christian Schulz , senior economist at Berenberg in London . Domestic demand highlights Germanys potential to continue to play a positive role in supporting the euro-zone crisis countries export-led recovery, he said. Net Trade Gross domestic product grew 0.6 percent from a year earlier when adjusted for working days, todays report showed. Government spending rose 0.5 percent from the prior quarter and private consumption gained 0.1 percent. Total domestic demand added 0.7 percentage point to GDP, while net trade subtracted 0.4 percentage point. Exports rose 0.1 percent while imports climbed 0.8 percent. Germanys increased reliance on its home economy may counter criticism from the International Monetary Fund and the U.S. Treasury , which have said the nation is hampering European and global growth by focusing too heavily on exports. European Union regulators said on Nov.
visit http://www.bloomberg.com/news/2013-11-22/german-growth-driven-by-investment-consumption-in-third-quarter.html

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