German GDP Contracts for 1st Time in 3-1/2 Years


The German economy shrank 0.2 percent on quarter in the three months to September 2018, worse than market expectations of a 0.1 percent fall and following a 0.5 percent growth in the previous period, a preliminary estimate showed. This was the first quarterly contraction since the first quarter of 2015 due to declines in both exports and household consumption.

The slight quarter-on-quarter decline in the gross domestic product was mainly due to the development of foreign trade. According to provisional calculations, exports were down while imports were up in the third quarter. As regards domestic demand, there were mixed signals. While gross fixed capital formation both in machinery and equipment and in construction was higher than in the previous quarter, final consumption expenditure of households declined. Government final consumption expenditure was slightly higher than in the previous quarter.

Year-on-year, the economy expanded a calendar-adjusted 1.1 percent in the September quarter, following a 2 percent growth in the previous three-month period. On an unadjusted basis, the GDP grew by 1.1 percent, much weaker than a 2.3 percent advance in the June quarter.

German GDP Contracts for 1st Time in 3-1/2 Years


Destatis | Rida | rida@tradingeconomics.com
11/14/2018 10:49:38 AM