By Maria Martinez
The German economy grew more strongly than originally assumed in the third quarter and exceeded expectations despite high inflation and uncertainties in the energy supply due to the Russian invasion of Ukraine.
According to a second period estimate published on Friday by the German statistical office Destatis, German gross domestic product grew by 0.4 percent compared to the previous period.
The number has been raised from the initial estimate, which showed the economy grew by 0.3%. Economists polled by the Wall Street Journal had also forecast growth of 0.3%.
Third-quarter GDP grew 1.3% year over year on a calendar-adjusted and price-adjusted basis, ahead of the 1.2% forecast by economists polled by the Wall Street Journal and the first estimate.
“As in the first two quarters, GDP rose despite difficult global economic conditions such as the ongoing Covid-19 pandemic, supply bottlenecks, sustained price increases and the war in Ukraine,” said Destatis.
According to Destatis, economic output in the third quarter was based primarily on private consumption. Despite continued strong price hikes and the widening energy crisis, consumers have seized the opportunity to travel and go out more after the easing of pandemic restrictions, the report said. Household spending increased by 1.0% compared to the second quarter.
Government spending remained about the same level as the previous quarter, construction investment fell 1.4% qoq, while investment in machinery and equipment rose 2.7% qoq in the third quarter, the report showed.
International trade increased despite the difficult international situation. Exports increased by 2.0% in the third quarter compared to the second quarter, while imports increased by a stronger 2.4%, according to Destatis.
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