German GDP expands in line with expectations in third quarter
The German economy expanded in line with expectations in the third quarter, figures released on Tuesday showed.
The Federal Statistics office confirmed an earlier flash estimate showing seasonally adjusted gross domestic product (GDP) grew 0.3% in the quarter to September from the previous three months, when it expanded 0.4%.
Private consumption rose 0.6% in the third quarter compared with an upwardly revised 0.1% gain in the previous quarter and analysts’ expectations for a 0.5% increase, while state spending soared 1.3% year-on-year.
The figure marked the biggest rise since early 2009 and was comfortably ahead of forecast for a 0.4% gain and of the upwardly revised 0.7% climb registered in the previous quarter.
Meanwhile, exports rose at a slower pace than imports, due to sluggish demand from China and emerging markets.
Exports climbed 0.2% year-on-year, a drastic slowdown from the 1.8% gain in the previous quarter and short of analysts’ expectations for a 0.4% gain, while imports beat forecast for a 1% hike, rising 1.1% from an upwardly revised 0.5% advance.
“Beyond the fourth quarter we expect to a strengthening in German growth as the global economy bottoms out, the weaker euro helps exports, the drag from inventories fades and some modest fiscal loosening takes effect,” said BNP Paribas’ analyst Dominic Bryant.