* German, French Q4 growth exceeds forecasts
* Italy grows marginally for first time since mid-2011
* Netherlands posts strong GDP rise
By Sarah Marsh and Leigh Thomas
BERLIN/PARIS, Feb 14 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 percent. Given the performance of its
biggest constituent parts, that could be exceeded.
German growth accelerated to 0.4 percent on the quarter
thanks to a rise in exports and capital investment, up from 0.3
percent in the previous three months.
The French economy expanded by 0.3 percent and statistics
office INSEE revised up the third quarter figure to flat from
That meant France grew 0.3 percent over the course of last
year, more than the government's estimate of 0.1 percent.
Italy, now awaiting a new prime minister with Enrico Letta
due to resign today having been forced out by his own Democratic
Party, dragged itself back to growth for the first time since
Its economy expanded marginally by 0.1 percent. Over the
whole of 2013, GDP contracted by 1.9 percent, the ISTAT
statistics office said.
Italy has been one of the world's most sluggish economies
for more than a decade. Growth has averaged less than zero over
the last 12 years. In 2014, the government forecasts growth of
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 percent 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
percent, its second successive quarter of expansion. The
government now expects growth this year of close to 1 percent,
compared with an official forecast of 0.7 percent.
The Dutch economy grew by a solid 0.7 percent on the
quarter, well above the market consensus. Austrian GDP rose 0.3
The French government expects growth will accelerate this
year to at least 0.9 percent, driven by a rebound in company
A breakdown of the fourth quarter French figures showed
growth was driven by the first rise in corporate investment in
two years. Public investment was even stronger and household
spending also recovered.
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