{{Economic growth in Germany and France, the euro zone’s two largest economies, marginally exceeded expectations in the fourth quarter and offered hope of a more robust 2014.}}
The euro zone number is due at 1000 GMT and forecast to show quarterly growth of 0.2%. Given the performance of its biggest constituent parts, that could be exceeded.
German growth accelerated to 0.4% on the quarter thanks to a rise in exports and capital investment, up from 0.3% in the previous three months.
The French economy expanded by 0.3% and statistics office INSEE revised up the third quarter figure to flat from -0.1%.
That meant France grew 0.3% over the course of last year, more than the government’s estimate of 0.1%.
The German Statistics Office saw “mixed signals” from the domestic economy, which has driven growth throughout most of the year, with public expenditure stable and private consumption slightly below the level of the previous quarter.
“Capital investment developed positively,” the Statistics Office said. “However a strong reduction in inventories put the brakes on economic growth.”
The German Economy Ministry said on Wednesday it expected gross domestic product (GDP) growth of 1.8% in 2014 – more than four times faster than in 2013 as a whole.
“The rise in capital investment is very positive and signals that the German economy is starting the new year well,” said Johannes Mayr, an economist at Bayern LB.
The European Central Bank kept policy steady earlier this month with President Mario Draghi declaring more information was needed before deciding on any action.
He cited fresh ECB staff forecasts which will be ready for the March policy meeting and the fourth quarter GDP numbers.
Spain has already reported fourth quarter growth of 0.3%, its second successive quarter of expansion.
The government now expects growth this year of close to 1%, compared with an official forecast of 0.7%.
The Dutch economy grew by a solid 0.7% on the quarter.
The French government expects growth will accelerate this year to at least 0.9%, driven by a rebound in corporate investment.
President Francois Hollande’s unpopular government was able to claim the first quarterly net creation of jobs since the start of 2012, recorded by non-farm payroll data from INSEE on Friday.
Finance Minister Pierre Moscovici nonetheless described the economy’s strength as “unsatisfactory” and said faster growth was needed to create more jobs with unemployment at nearly 11%.
After hiking taxes during his first year in office, President Francois Hollande last month offered to phase out 30 billion euros ($41 billion) in payroll tax in exchange for commitments from businesses to hire and invest in France. ($1 = 0.7317 euros).
{A worker collects items to pack into boxes at Amazon’s logistics centre in Graben near Augsburg December 16, 2013}
{reuters}
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