German GDP Growth Confirmed at 0.3% in Q3


In the third quarter of 2013, German economy expanded a seasonally adjusted 0.3 percent compared with the previous quarter. The growth was mainly driven by domestic demand.

In the third quarter, positive contributions were made exclusively by domestic demand. In particular, fixed capital formation rose again markedly. Gross fixed capital formation in machinery and equipment increased 0.5 percent on the previous quarter (upon price, seasonal and calendar adjustment). Gross fixed capital formation in construction rose even 2.4 percent. In addition, government final consumption expenditure was up 0.5 percent, and household final consumption expenditure rose slightly (+0.1 percent), too, compared with the second quarter of 2013.

The balance of exports and imports slowed down GDP growth. While, in the third quarter of 2013, more goods and services were imported (+0.8 percent), exports were only slightly higher (+0.1 percent) than in the previous quarter. Consequently, the balance of exports and imports had a negative impact on GDP growth (–0.4 percentage points).

Year over year, German economy expanded 1.1 percent, mainly due to the positive contribution of domestic demand. In contrast, gross fixed capital formation in machinery and equipment made a downward effect on the GDP.

German GDP Growth Confirmed at 0.3% in Q3


Destatis | Krisztina Györffy | krisztina@tradingeconomics.com
11/22/2013 8:55:36 AM