Germany, GDP recovers: the recession is avoided by a whisker

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eurozone

The largest European economy grew by 0.1% in the third quarter. They keep household consumption. Analysts estimated a negative figure for the second consecutive period

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The Volkswagen electric car production line at the Zwickau plant in Germany

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With an unexpected recovery, the German economy managed to avoid the recession: in the third quarter, private consumption supported Europe's largest economy by increasing GDP by 0.1% compared to the previous period. The second quarter ended with a decrease of 0.2% (revised down from -0.1% previously estimated). For the Berlin government, however, these are "still too weak numbers".

Preliminary data, released by the Federal Statistical Office, therefore indicate a performance higher than the forecasts of analysts who expected a further contraction and therefore the technical recession (the Reuters agency panel had forecast a -0.1% cyclical and a + 0.5% trend).

Between July and September, German gross domestic product, on the other hand, grew by 0.5% compared to the same quarter in the past year, after having recorded an annual growth of 0.3% between April and June.

They keep private consumption, administration and export
Household spending was higher than in the second quarter and public spending also increased, as experts from the Statistical Office explained, also adding construction among the sectors that favored the growth, albeit slight, of GDP. While exports increased, imports remained almost stable at the levels of the previous quarter, thus also suggesting a net positive impact of trade on the German economy.

"We don't have a technical recession, but the numbers on growth are still too weak," he said the Minister of the Economy, Peter Altmaier. The timid awakening of the third quarter cannot wipe out the very difficult period for the German economy which has become a source of weakness as a growth engine for the euro area. The addition of commercial tensions, weaker global demand and turbulence in the automotive sector have led to the worst fall in production in the last decade. Generating concern in all countries, such as Italy, whose companies are linked to the production chain of German industry.



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