Preliminary growth data from the euro zone's largest economy and powerhouse, Germany, shows the economy is limping along with a lackluster expansion seen in the fourth quarter.
In the fourth quarter, German GDP rose 0.3 percent from the previous quarter, in line with expectations. Year-on-year, the economy expanded 1.3 percent, Germany's statistics office Destatis said on Friday. The statistics body also confirmed growth of 1.7 percent in 2015.
Destatis noted that "positive contributions were made by domestic demand again" although it noted a decline in exports had put a dampener on growth.
n employee inspects a truck axle hanging on the assembly line inside the MAN SE factory in Germany.
Krisztian Bocsi/Bloomberg via Getty Images
n employee inspects a truck axle hanging on the assembly line inside the MAN SE factory in Germany.
"General government final consumption expenditure was markedly up, while household final consumption expenditure rose slightly again." However, it said "the development of foreign trade had a downward effect on growth because the exports of goods were down on the previous quarter. Imports decreased, too, though less strongly."
The data comes ahead of wider euro zone figures for the fourth quarter. Analysts are forecasting growth of 0.3 percent in the fourth quarter for the 19-country single currency region, the same rate as the third quarter. "That would confirm that the euro area economic recovery lost some momentum in the second half of last year and suggests that the year-on-year rate moderated slightly to 1.5 percent year-on-year," Chris Scicluna, head of economic research at Daiwa Capital Markets said in a note on Friday.
There are fears that a further slowdown in Germany could impact growth in the region. The country has been seen as the backbone of the euro zone economy in recent years with its gross domestic product expanding despite difficult conditions during the region's economic crisis.