German growth slows as GDP edges up 0.3 per cent in third quarter
The German economy grew just 0.3 per cent in the third quarter, an estimate published today showed – down from 0.4 per cent in the previous quarter.
Although the figure met economists' expectations, it was nonetheless disappointing for those hoping for a stronger performance.
Destatis, Germany's official statistics body, said that while final consumption expenditure by both households and government had contributed to growth, gross fixed capital formation had decreased slightly.
Foreign trade also had an impact on growth: "the increase in imports was markedly larger than that of exports", Destatis said.
However, a year-on-year comparison was more encouraging: price-adjusted GDP in the third quarter rose 1.8 per cent, from 1.6 per cent in the second quarter and 1.2 per cent in the first quarter.
Figures for the entire Eurozone, due out later today, are expected to confirm GDP growth in the bloc remained unchanged at 0.4 per cent quarter-on-quarter.
The weak growth is likely to to hold off any interest rate rise from the European Central Bank – a divergence from the US Fed, which is expected to hike rates at its December meeting.
