The German economy grew by a smaller than expected 0.2 per cent in the last three months of 2003 due a slowdown in exports and weak consumer spending, preliminary data released today showed.
The quarterly rise, adjusted for seasonal factors and differences in the number of working days, was below a forecast for growth of 0.3 per cent in a Reuters poll of 20 economists.
Capital investment is likely to have accounted for the modest growth, economists said.
Mr Brian Mandt, an economist at Postbank, said: "Fourth quarter exports were down on the previous quarter and retail sales in the last three months of the year showed that consumer spending was weak."
Year-on-year, fourth-quarter GDP also grew by 0.2 per cent, the Federal Statistics Office said. Economists polled by Reuters had predicted year-on-year growth of 0.1 per cent.
The Office also confirmed earlier data showing third-quarter GDP grew 0.2 per cent quarter-on-quarter following two previous quarters of contraction.