Germany GDP Q3 2017

Germany

Germany: Economy accelerates in Q3 on the back of robust trade and investment, beating expectations

November 14, 2017

The German economy shifted into a higher gear in the third quarter, surpassing market analysts’ expectations, according to preliminary data released by the Federal Statistics Office (Destatis) on 14 November. In the third quarter, GDP rose a seasonally-, calendar- and price-adjusted 0.8% over the prior quarter. The print is up from the 0.6% expansion clocked in Q2.

Data showed that the German economy powered ahead on the back of solid trade and investment, which did the heavy lifting in the third quarter. Fixed investment in machinery and equipment performed especially well; fixed investment is likely to continue performing robustly through year-end. Following the data release, the Centre for European Economic Research (ZEW) commented that investor morale improved in November as Europe is experiencing high levels of growth. Both private and government consumption, on the other hand, were stable compared to the previous quarter.

A year-on-year comparison showed that GDP grew a price-adjusted 2.3% in the third quarter, a notable pick-up in pace from the prior quarter’s 1.0% increase. A more detailed breakdown of the result will be released on 24 November 2017.

The government expects economic activity to increase 1.90% in 2018. FocusEconomics Consensus Forecast panelists also see economic activity expanding 1.90% in 2018, which is up 0.1 percentage points from last month’s forecast. For 2019, the panel forecasts GDP growth of 1.70%.


Author:, Economist

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Germany GDP Q3 2017 1

Note: Quarter-on-quarter changes of seasonally adjusted GDP and year-on-year variation in %.
Source: Federal Statistics Office (Destatis) and FocusEconomics Consensus Forecast


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