German GDP Expands Less Than Estimated In Q3

The German economy expanded slightly less than estimated in the third quarter on weak investment and exports, revised data from Destatis showed on Thursday.

Gross domestic product grew 1.7 percent sequentially in the third quarter, instead of 1.8 percent estimated on October 29.

Destatis said the recovery of the German economy thus continued in summer, after the GDP had grown by 2.0 percent in the second quarter.

The expenditure-side breakdown showed that household spending grew strongly by 6.2 percent, while government spending fell 2.2 percent in the third quarter.

Gross fixed capital formation also dropped 2.2 percent from the last quarter. Investment in machinery and equipment decreased 3.7 percent and that in construction by 2.3 percent.

Further, foreign trade decreased in the third quarter. Exports and imports were down 1 percent and 0.6 percent, respectively.

Compared with the fourth quarter of 2019, the quarter before the coronavirus crisis began, GDP was 1.1 percent lower.

On a yearly basis, calendar-adjusted GDP growth eased markedly to 2.5 percent, in line with preliminary estimate, from 10.0 percent in the second quarter.

On an unadjusted basis, GDP grew 2.5 percent in the third quarter, after 10.4 percent expansion seen in the preceding period. The third quarter annual figure matched the preliminary estimate.

Early this week, Bundesbank said economic recovery is likely to take a breather this autumn as the supply chain issues continue to weigh on industrial output.

Data from Destatis revealed that the number of persons in employment increased by 267,000, or 0.6 percent from the third quarter of 2020. Although employment is still below pre-crisis level, a marked upward trend is observed, the agency added.

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