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Slow consumption drives Germany economy to stagnation

Slower consumption drives Germany economy to stagnation

Slowdown in household consumption caused the German economy to stagnate in the final three months last year, Federal Statistical Office data released on Tuesday showed.  

The final GDP in Germany showed no growth in the fourth quarter, moving in line with both analysts' forecasts and the preliminary estimate.

Household consumption stalled in the fourth quarter after it was the key driver to a 0.2 percent growth in the third quarter.

On the annual basis, Europe's largest economy expanded only 0.4 percent in the fourth quarter, noting that it registered an expansion of 0.6 percent over the course of 2019.

Exports dipped 0.2 percent in the quarter, while imports climbed 1.3 percent, Destatis data showed.

However, a report released on Monday signaled an unexpected rise in Germany's business confidence in February, which reflected that the economy is unaffected by the spread of the coronavirus.

After rising over the previous two sessions, the euro was little changed at 1.0849 versus the U.S. dollar, as of 07:40 GMT.

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