Germany economy expands less than reported in third quarter

Economy has since been hit by fresh wave of Covid cases

Photograph: iStock

Photograph: iStock

 

The German economy expanded less than initially reported in the third quarter, even before a fresh wave of the coronavirus pandemic hit the country.

Total output increased 1.7 per cent, below the 1.8 per cent reading given by Germany’s statistics office in late October.

With its focus on manufacturing, Europe’s largest economy got hamstrung by the global supply crunch. That’s led to downward revisions to the growth outlook, and a worsening of pandemic now has the country on alert for a possible lockdown.

Moreover, the country is facing unprecedented inflationary pressures threatening to restrain output in the coming months. Inflation data due Monday may show a November reading just under 6 per cent, according to the Bundesbank. – Bloomberg