German economy slows down in third quarter

The German economy registered a slight slowdown in the third quarter, figures released on Friday showed.

According to Destatis, Germany’s statistical office, the country’s gross domestic product in the third quarter expanded a seasonally adjusted 0.3% from the previous quarter, in line with the 0.3% gain analysts had expected but lower than the 0.4% reading registered in the previous three months.

However, on a year-on-year basis, German GDP rose 1.7%, higher than the 1.6% gain it registered in the second quarter but short of the 1.8% hike analysts had expected.

Destatis attributed the slight slowdown to a slump in exports, due to weaker demand from China and other emerging markets, while investment declined in the period, disappointing economists that had forecast a strong rebound from the previous three months.

“We retain the view that the German economy remains on track to grow by 1.5% this year and 1.6% in 2016,” analysts at Barclays said.

“An important caveat to this relatively benign growth forecast remains the outlook for global demand, as its deterioration has already weighed on factory orders, industrial sector performance and trade data, although business confidence, and in particular forward looking components, remain positively oriented.”