{"id":135384,"date":"2023-12-01T09:38:53","date_gmt":"2023-12-01T09:38:53","guid":{"rendered":"https:\/\/allmybiznews.com\/?p=135384"},"modified":"2023-12-01T09:38:53","modified_gmt":"2023-12-01T09:38:53","slug":"german-economy-shrinks-0-1-as-estimated","status":"publish","type":"post","link":"https:\/\/allmybiznews.com\/business\/german-economy-shrinks-0-1-as-estimated\/","title":{"rendered":"German Economy Shrinks 0.1% As Estimated"},"content":{"rendered":"
Germany’s economy<\/span> contracted slightly, as initially estimated, in the third quarter with the household consumption that used to be the pillar of growth, acting as a drag. <\/p>\n Confirming the initial figures, detailed data from the statistical office Destatis showed on Friday that gross domestic product shrank 0.1 percent quarterly.<\/p>\n Economic performance was virtually stagnant in the first two quarters of the year with flat growth in the first quarter and a 0.1 percent rise in the second quarter. <\/p>\n Household spending dropped 0.3 percent after a 0.2 percent rebound in the preceding period. Meanwhile, government spending grew for the first time in more than a year, up 0.2 percent. <\/p>\n Positive contributions came from gross fixed capital formation. Investment in machinery and equipment rose 1.1 percent and that in construction gained 0.4 percent. <\/p>\n Exports of goods and services decreased 0.8 percent. At the same time, imports declined more markedly by 1.3 percent. The net exports rose 0.9 percent. <\/p>\n The calendar-adjusted GDP contracted 0.4 percent annually after rising 0.1 percent in the second quarter. This measure was initially estimated to have fallen 0.3 percent. <\/p>\n The annual decrease in price-adjusted GDP doubled to 0.8 percent from 0.4 percent.<\/p>\n “Today’s data will do very little to end the debate on whether or not the German economy is again the sick man of Europe,” ING economist Carsten Brzeski said. <\/p>\n “In any case, the German economy has become one of the growth laggards of the eurozone.”<\/p>\n The Bundesbank forecast the German economy to shrink again in the fourth quarter before undergoing a slight increase in economic output in the first quarter of 2024. <\/p>\n The European Commission had projected Germany to shrink 0.3 percent in 2023, before rebounding 0.8 percent next year and 1.2 percent in 2025. <\/p>\n