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.
Author: Jan Lammersen, Economist