German economy beats expectations with 0.4% growth in Q3

BERLIN (Reuters) -The German economy grew slightly more in the third quarter than preliminary figures suggested, bolstered by consumer spending, data showed on Friday.

Europe’s largest economy grew by 0.4% quarter on quarter and 1.3% on the year, adjusted for price and calendar effects, the federal statistics office said.

Analysts polled by Reuters had expected the economy to grow by 0.3% in the third quarter on quarter and 1.2% on the year.

Household spending was the main reason for the bump in the quarter-on-quarter figure as consumers travelled and went out more after nearly all pandemic restrictions had been lifted.

In the previous quarter, the German economy grew slightly, by 0.1% quarter on quarter.

In its latest forecast, the government predicted the economy would grow by 1.4% this year and slump by 0.4% next year.

An economy ministry spokesperson said current indicators continue to point to a recession in the six months through March.

“The preconditions for a mild course of the recession are that no acute gas shortage situation arises, that no difficult COVID developments occur and that the supply chains continue to stabilise gradually,” added the spokesperson.

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