Status: 11/25/2022 09:37 am
The conditions were very modest: high inflation, sharply increased energy prices and problems with the supply of primary products. Nevertheless, the German economy grew in the summer.
Despite record inflation, high energy prices, an ongoing corona pandemic and supply bottlenecks, the German economy grew more strongly in the summer than initially assumed. According to the Federal Statistical Office, gross domestic product (GDP), i.e. economic output, increased by 0.4 percent in the third quarter compared to the previous quarter. In a first estimate, the Wiesbaden authority assumed a price-, seasonally- and calendar-adjusted increase in economic output of 0.3 percent.
Companies invested significantly more in equipment such as machines. On the other hand, as in the second quarter, construction investments declined after adjustment for price, seasonal and calendar effects. High building prices and higher mortgage interest rates are dampening business.
Private individuals support the economy
Private consumer spending, on the other hand, boosted economic growth noticeably. In the third quarter, consumers used the lifting of almost all corona restrictions, for example to travel more and go out, as the Wiesbaden authorities explained. Overall, people in Germany increased their consumer spending by one percent.
The German economy also grew in the first two quarters, by 0.8 and 0.1 percent respectively.
“Surprise all along the line”
“Wow, now there’s even GDP growth of 0.4 percent. The details of German GDP are surprising across the board,” commented Thomas Gitzel, Chief Economist at VP Bank. growth in the third quarter already marks the end of positive growth rates for the time being.” It is quite conceivable that the economy will stay afloat in the fourth quarter.
The most important German economic barometer, the Ifo business climate index, had also recently sent positive signals. At the same time, the mood to buy has brightened again, albeit from a very low level.