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German Economy Shrinks by 0.1 Pct in Q3: Destatis


Germany’s gross domestic product (GDP) in the third quarter (Q3) of 2023 declined by 0.1 percent compared to the previous quarter, according to preliminary figures published by the Federal Statistical Office (Destatis) on Monday.

GDP in Q3 was down 0.8 percent compared with the same period of 2022 after price adjustment.

While investments in equipment and machinery made “positive contributions,” Destatis said that private consumer spending, which has traditionally driven growth in the past, decreased during the summer months.

Consumer price index (CPI) in Germany was normalizing more slowly than in other euro zone countries, before recording a sharp drop to 4.5 percent in September. In October, inflation in Europe’s largest economy further declined to 3.8 percent, Destatis said on Monday.

In the first half of the year, economic development in Germany was restrained, with stagnation in the first quarter and only slight growth of 0.1 percent in the second, according to official figures.

In line with leading economic institutes, the German government lowered its annual forecast for economy earlier this month, and is now expecting a 0.4 percent recession in 2023.

Source: Xinhua