BERLIN: Germany’s industrial production and its exports rose more than expected in November, pointing to continued rising growth in Europe’s largest economy in 2018.

Industrial output jumped by 3.4 per cent on the month, the strongest increase since September 2009, data from the Federal Statistics Office showed on Tuesday, overshooting a 1.8 per cent forecast in a Reuters poll.

Meanwhile the German government expects 2017 economic growth to come in at 2.2 per cent, Deputy Economy Minister Matthias Machnig said on Tuesday, higher than the 2 per cent forecast in October.

“And we assume that it will continue at about the same level,” Machnig said, referring to 2018.

November seasonally adjusted exports rose by 4.1 per cent on the month and domestic demand pushed up imports by 2.3 per cent. Both figures beat Reuters forecasts and widened the trade surplus to 22.3 billion euros ($26.61 billion) from 19.9 billion euros in October.

“November’s surge in German industrial production is a welcome confirmation that the economy approached the end of 2017 in very good health and the surveys point to further strength to come,” Jennifer McKeown of Capital Economics wrote in a note.

The figures and buoyant business sentiments suggest “that the German economy ended 2017 with a bang after the third-quarter’s impressive 0.8 per cent expansion,” she added. The economy has continued to surge despite political deadlock as Chancellor Angela Merkel has failed to form a new coalition government since a September election.

Reuters