Family consumption in summer sustains German GDP until September
The GDP of the largest European economy by size, Germany, accelerated slightly in the third quarter of the year, thanks to the boost consumption of homes in the middle of the summer season – the first without restrictions due to the covid since 2020 – and despite the context of uncertainty due to the war and the energy crisis, to which the country is especially sensitive. Activity advanced 0.4% between July and September, three tenths more than the previous quarter and one tenth above what its statistics office had forecast a few weeks ago (0.3%).
“GDP increased, as had been the case in the first two quarters (+0.8% and +0.1%, respectively), despite difficult general conditions in the world economy, such as the continuation of the pandemic of Covid-19, the bottlenecks in deliveries, the continuous price rises and the war in Ukraine,” Destatis highlighted this Friday.
Likewise, Third quarter GDP increased 1.2% year-on-year adjusted for price and 1.3% adjusted for price and calendar compared to the third quarter of 2021. In addition, the GDP of the ‘European locomotive’ exceeded the pre-pandemic level for the first time in this period (+0.3%). Household final consumption spending largely boosted activity as, despite price increases and the spread of the energy crisis, consumers took the opportunity to travel and go out more, after the lifting of almost all restrictions due to Covid-19.
Exports hold up
Thus, spending on final household consumption increased by 1% compared to the second quarter, while the final consumption expenditure of the Government remained approximately at the same level of the previous quarter. Likewise, gross fixed capital formation in construction fell by 1.4% and gross fixed capital formation in machinery and equipment increased by 2.7%.
Overall, foreign trade increased, despite the difficult international situation. Thanks to continued high order stocks and improved supply chains around the world, companies exports of goods and services from Germany increased by 2% in the third quarter of 2022 compared to the second quarter of 2022, while the increase in imports of 2.4% was even higher than that of exports.
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