German Economy Notches 3.3% Growth in Third Quarter

Postado Novembro 14, 2017

Germany on Tuesday said its economy grew at a faster pace than expected in the third quarter, fuelling calls for the incoming government to loosen the purse strings and invest more to keep Europe's powerhouse humming.

Carsten Hesse, European economist at German bank Berenberg, said: "So far, the Catalan political turmoil, the political uncertainty in Italy ahead of the spring 2018 elections and sticky Brexit negotiations have had no measurable negative impact on the Eurozone economy".

While German business confidence is at an all-time high, investor confidence is also up, order books are full, unemployment is at an historic low and the trade surplus is also in record territory, according to recent official data.

The broader European economy grew by 0.6 per cent in the third quarter, according to a slight upward revision of growth published today by the European Commission.

The German economy bounded ahead at a stronger-than-forecast pace in the third quarter as the nation's growth rate heads toward its best performance in six years.

"The German economy is on track to hit 3% GDP growth in 2017", said Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics.

Destatis said that third-quarter growth was led by improvement in foreign trade amid rising demand for high-end tools and machinery.

The ECB's moves have been complicated by separate Destatis data confirming annual German inflation edged lower to 1.6% in October from 1.8% in September amid weaker energy prices.

While third-quarter government and consumer spending remained essentially stable, Destatis said corporate investment "made a positive contribution to economic growth".

"The German economy is now showing its best performance over such a long period since the mid-1990s", said ING Bank economist Carsten Brzeski.

Unadjusted figures showed Germany's gross domestic product (GDP) rose by 2.3 percent when compared with the same period past year.