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Germany

In Germany the economic upswing was sustained in the year under review. According to figures published by the Federal Statistical Office, real gross domestic product grew by 3.0% in the full year. Germany was thus a front-runner among the major industrial nations and delivered healthy growth contributions to gross domestic product within the area of the single currency. The most significant driver of growth for the German economy was domestic demand. Private consumption developed favourably and disposable incomes rose. The state of the labour market, which benefited from the surging economy, also improved. The consistently good year-end results cannot, however, conceal the fact that in Germany too economic prospects had become gloomier by the close of the year.

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