Germany’s economy showed a growth of 0.1 percent on a quarterly basis in the third quarter. The German Federal Statistical Office reported this on the basis of a definitive figure.
The figure corresponds to a provisional estimate. With that small growth in the last quarter, Europe’s largest economy managed to prevent a technical recession, as the second quarter still saw a contraction of 0.2 percent. In the first quarter of this year, the German economy posted a plus of 0.5 percent.
The figures showed that the German economy was mainly supported by higher spending by consumers and governments, plus the construction sector and exports. Capital investments went down. The German economy advanced 0.5 percent on an annual basis. This figure has been adjusted for calendar effects.
ING economist Carsten Brzeski wrote in a response that consumer spending and construction have saved the German economy from a recession in the third quarter. According to the economist, there are few signs of a speedy recovery of the weakened industry in Germany. The economy of the country continues to flirt with stagnation or even a recession, thinks Brzeski.