The German economy grew slightly in the third quarter, the Federal Statistics Office said Tuesday, keeping pressure on policy makers to go ahead with measures to provide stimulus.
In adjusted terms, Germany’s gross domestic product rose 0.1% in the third quarter after a 0.1% contraction in the second quarter, the statistics office Destatis said, confirming its preliminary figures published Nov. 14. The revision of second-quarter GDP to a 0.1% contraction followed a preliminary reading showing a 0.2% shrinkage.
The statistics office said GDP grew 1.2% in the third quarter compared with the same period last year, also unchanged from the first reading.
Domestic demand cut 0.2 percentage points from the quarterly figures, while net trade added 0.2 percentage points.
The GDP figure was helped by private consumption, which increased 0.7% on the quarter, while government consumption grew 0.6% compared with the second quarter. Gross capital formation declined by 3.6% and exports were up 1.9%, Destatis said.
The data followed a mixed bag of German indicators for the third quarter. The picture was also mixed in Europe, with less growth in the eurozone’s core counties and more dynamics in countries that were hit hard by the debt crisis. This has added pressure on policy makers to push ahead with measures that stimulate the economy, although they are divided about how to do so. The European Commission is adamant that budget deficit cuts are needed but France is urging a policy that focuses on more investment and hence more growth and job creation.
Source: MarketWatch
