German GDP expands just 0.1% in third quarter

(Sharecast News) - Germany's economy escaped a technical recession in the third quarter of 2024, but growth still came in below forecasts, according to official figures out on Friday from Destatis. The Federal Statistical Office reported that the GDP expanded by a paltry 0.1% between July and September, rebounding after a 0.3% quarterly decline in the second quarter.

The consensus forecast was for GDP growth of 0.2%.

Destatis said that household final consumption improved by 0.3% over the three-month period and government spending growth rose 0.4%, while fixed investment fell 0.1%. Meanwhile, exports were 1.9% lower as imports rose 0.2%, meaning net trade provided a drag on GDP.

In year-on-year terms, the German economy was 0.3% smaller than the third quarter of 2023, the fifth straight quarter of contracting GDP in year-on-year terms. This followed a 0.3% decline in the second quarter and was slightly worse than economists' predictions of -0.2%.