Unexpectedly strong: German economy grows by 0.4 percent in summer

Despite headwinds, the German economy grew more strongly than initially assumed in the summer.

Unexpectedly strong: German economy grows by 0.4 percent in summer

Despite headwinds, the German economy grew more strongly than initially assumed in the summer. In the third quarter, gross domestic product increased by 0.4 percent compared to the previous quarter. The overall prospects are still bleak.

Despite record inflation and delivery bottlenecks, the German economy grew more strongly in the summer than initially assumed. The gross domestic product rose by 0.4 percent from July to September compared to the previous quarter, as reported by the Federal Statistical Office. In a first estimate from the end of October, the authority had only reported growth of 0.3 percent.

Consumers gave a noticeable boost to economic growth with their spending. Private consumption increased by 1.0 percent compared to the previous quarter. Nevertheless, the overall outlook is bleak. Most experts expect the gross domestic product to shrink in the current final quarter of 2022 and at the beginning of next year.

However, the recent rise in the Ifo business climate index signaled that the recession could be milder than initially assumed due to the energy crisis resulting from the Ukraine war.

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