Germany's statistics office released figures on Friday that indicated the country's GDP dropped little in the third quarter as compared to the preceding three months.
The data supported a preliminary projection that the largest economy in Europe shrank by 0.1% and was released in late October.
"After the weak economic development seen in the first half of 2023, the German economy began the second half of the year with a slight drop in performance," said Ruth Brand, president of the statistics office.
Due to a combination of rising interest rates, sluggish global orders, and high energy costs, Germany's economy has been among the weakest in Europe this year.
Germany's economy expanded by 0.1% in the second quarter of the year following a stagnant first three months.
In the third quarter, the GDP (adjusted) shrank by 0.4% on an annual basis.
According to the statistics office, private consumer spending, which makes up around two thirds of GDP, decreased by 0.3% from the prior quarter. It also revealed that government consumer expenditure rose by 0.2% for the first time in almost a year.
Major uncertainty has arisen regarding planned expenditures, particularly among business, following a court verdict that prohibited the transfer of wasted cash from the pandemic to green investment and blew a 60 billion euro ($65.44 billion) hole in the government's budget.
"Government austerity measures could lead to an additional dampening of growth," said VP Bank Chief Economist Thomas Gitzel, adding "it is unlikely that private consumption or investment will suddenly pick up."
In its monthly economic assessment released on Monday, the Bundesbank predicted that the German economy would probably contract once again in the fourth quarter and then begin to slowly revive in the early months of the following year.
(Sourec:www.nasdaq.com)
The data supported a preliminary projection that the largest economy in Europe shrank by 0.1% and was released in late October.
"After the weak economic development seen in the first half of 2023, the German economy began the second half of the year with a slight drop in performance," said Ruth Brand, president of the statistics office.
Due to a combination of rising interest rates, sluggish global orders, and high energy costs, Germany's economy has been among the weakest in Europe this year.
Germany's economy expanded by 0.1% in the second quarter of the year following a stagnant first three months.
In the third quarter, the GDP (adjusted) shrank by 0.4% on an annual basis.
According to the statistics office, private consumer spending, which makes up around two thirds of GDP, decreased by 0.3% from the prior quarter. It also revealed that government consumer expenditure rose by 0.2% for the first time in almost a year.
Major uncertainty has arisen regarding planned expenditures, particularly among business, following a court verdict that prohibited the transfer of wasted cash from the pandemic to green investment and blew a 60 billion euro ($65.44 billion) hole in the government's budget.
"Government austerity measures could lead to an additional dampening of growth," said VP Bank Chief Economist Thomas Gitzel, adding "it is unlikely that private consumption or investment will suddenly pick up."
In its monthly economic assessment released on Monday, the Bundesbank predicted that the German economy would probably contract once again in the fourth quarter and then begin to slowly revive in the early months of the following year.
(Sourec:www.nasdaq.com)
