German GDP Growth Confirmed at 0.2% in Q3


The German economy expanded a seasonally-adjusted 0.2 percent in the third quarter of 2016, slowing from a 0.4 percent expansion in the preceding quarter and matching preliminary estimates. It was the weakest growth since the third quarter 2015, mainly supported by domestic demand while investment stagnated and net trade had a downward effect on growth.

Quarter-on-quarter, private consumption rose 0.6 percent, compared to a 0.5 percent growth in the June quarter. Public consumption advanced by 1.0 percent, slowing from a 1.2 percent increase in the previous three months. Overall consumption contributed 0.4 percentage points to growth. Gross fixed capital formation remained unchanged, following a 1.6 percent decline in the previous quarter. Investment in machinery and equipment dropped by 0.6 percent (after a 2.3 percent drop in the second quarter). In contrast, construction investment rose 0.3 percent (from -1.9 percent). Investment in other products also grew by 0.6percent, slowing slightly from a 0.7 percent rise in the previous three months. Exports declined by 0.4 percent, compared to a 1.2 percent growth in the June quarter. Imports went up 0.2 percent, faster than a 0.1 percent growth in the previous three months. That brought a downward effect to the GDP (-0.3 percentage points). Inventories showed no contribution to growth.

Year-on-year, the GDP advanced 1.5 percent, compared to a 3.1 percent growth in the previous three months and below an earlier projection of 1.7 percent expansion. Household final consumption rose 1.5 percent, slower than a 2.7 percent growth in the previous quarter. Government consumption expanded 4.5 percent, up from a 4.3 percent expansion in the June quarter. Overall consumption contributed 1.7 percentage points to growth. Gross fixed capital formation also grew 1.3 percent (after a 4.4 percent expansion in the preceding quarter). Investment in other products rose the most by 2.7 percent, followed by construction (+2.0 percent). In contrast, machinery and equipment investment fell 0.6 percent. Overall investment added 0.3 percentage points to growth. The reduction in inventories slowed down the GDP growth by 0.1 percentage points. The balance of exports and imports substracted 0.3 percentage points to the year-on-year GDP growth. 

German GDP Growth Confirmed at 0.2% in Q3


Destatis l Rida Husna | rida@tradingeconomics.com
11/24/2016 7:38:49 AM