Exports help boost German economy

Exports helped to propel the German economy to 0.4% growth in the fourth quarter while domestic demand dropped, underlining concerns that Europe’s largest economy is relying too heavily on foreign trade.

The Federal Statistical Office said today that exports accounted for 1.1 percentage points of fourth-quarter 2013 gross domestic product, while domestic demand subtracted 0.7 percentage points.

In the same report, the office confirmed its preliminary report from earlier this month that the economy grew a seasonally adjusted 0.4% in the fourth quarter and also 0.4% overall in 2013.

Germany’s trade surplus hit a record high in 2013, underscoring criticism from the US, the International Monetary Fund and others that it is relying too heavily on exports and not doing enough to encourage domestic demand.