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German economy grows by 1.8 percent

2021-10-29T08:33:05.385Z


The German economy grew significantly in the third quarter. The experts' expectations were still not met.


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Mechanical engineering: delivery bottlenecks and energy prices slow down

Photo: Jens B¸ttner / DPA

The German economy lost some of its momentum in the face of delivery bottlenecks in the summer.

The gross domestic product (GDP) climbed from July to September by only 1.8 percent compared to the previous quarter, as the Federal Statistical Office announced on Friday.

Economists polled by Reuters had expected 2.2 percent, after a revised 1.9 percent in the spring.

"This means that the recovery of the German economy continued in the summer," explained the statisticians.

According to the first preliminary calculations, growth in the third quarter was mainly driven by higher private consumer spending.

more on the subject

  • Only 2.6 percent growth expected: Federal government drastically lowers economic forecast

  • Goods, labor, energy: now comes the era of scarcityA column by Henrik Müller

  • Ifo index falls again: delivery bottlenecks depress mood in German companies

However, due to the continuing shortage of materials for important intermediate products in industry, the prospects for the German economy have recently deteriorated.

The Ifo business climate index, the most important indicator for economic development, has fallen for four months in a row.

Economists and economic research institutes have lowered their economic forecasts and expect the recovery from the Corona crisis to shift more strongly to next year.

The outgoing Minister of Economic Affairs Peter Altmaier recently cut the estimate for 2021 significantly to 2.6 percent.

The government is now expecting stronger growth of 4.1 percent for next year.

In addition to global delivery bottlenecks, rising corona numbers in winter are also considered to be risks for the German economy.

In addition, inflation, driven by higher energy prices, has climbed to its highest level since October 1993 and is a burden for companies and consumers.

mik / Reuters

Source: spiegel

All business articles on 2021-10-29

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