Economy: German economy grows surprisingly in the summer
Low water levels on the Rhine and the Iran war weighed on the German economy in the third quarter. Nevertheless, a decline did not materialize - what is behind the unexpected plus?
In the third quarter, Germany's economy grew stronger than most economists had predicted. The gross domestic product (GDP) increased by 0.2 percent between July and September, according to the Federal Statistical Office, which released a preliminary estimate on Friday. Leading German economic research institutes had only forecasted 0.1 percent growth for the third quarter in their recent joint economic outlook.
"The German economy has continued its recovery despite challenges," said Nils Jannsen, head of the Germany economy at the Kiel Institute. For the entire year, the GDP growth could turn out to be better. Deutsche Bank had already raised its forecast by 0.2 percentage points to 1 percent on Friday. The federal government is currently estimating 1.3 percent growth for the year, which could also be revised upward.
However, the German economy has nonetheless lost momentum. In the first quarter of this year, the GDP had grown by 0.4 percent, while in the second quarter it grew by 0.3 percent. It was apparent that Germany's recovery could not maintain such a pace.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
