Economy

German economy beats expectations with 0.4% growth in third quarter

Consumer spending helps push GDP growth

German GDP grew 0.4% in the third quarter Photograph: EPA

Fri Nov 25 2022 - 07:33

The German economy grew slightly more in the third quarter than preliminary figures suggested, bolstered by consumer spending, data showed on Friday.

Europe’s largest economy grew by 0.4 per cent quarter on quarter and 1.3 per cent on the year, adjusted for price and calendar effects, the federal statistics office said.

Analysts polled by Reuters had expected the economy to grow by 0.3 per cent in the third quarter on quarter and 1.2 per cent on the year.

Household spending was the main reason for the bump in the quarter-on-quarter figure as consumers travelled and went out more after nearly all pandemic restrictions had been lifted.

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In the previous quarter, the German economy grew slightly, by 0.1 per cent quarter on quarter.

In its latest forecast, the government predicted the economy would grow by 1.4 per cent this year and slump by 0.4 per cent next year.

An economy ministry spokesperson said current indicators continue to point to a recession in the six months through March.

“The preconditions for a mild course of the recession are that no acute gas shortage situation arises, that no difficult COVID developments occur and that the supply chains continue to stabilise gradually,” added the spokesperson. – Reuters

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