German economy grows by 0.7%

The German economy, Europe’s biggest, picked up speed in the fourth quarter of 2014 to grow by 0.7% compared with the previous three-month period, official data shows.

The growth figure, reported by the Federal Statistical Office today, contrasted with a feeble increase of 0.1% in the third quarter and a decline of 0.1% in the second quarter. It was much better than the 0.3% rise economists had expected.

The statistical office said the German economy grew by 1.6% last year compared with 2013 – better than an initial estimate of 1.5% it gave last month.