Germany’s economy records surprising growth of 0.2 percent in Q3
Date
10/31/2024 8:02:39 AM
(MENAFN) The German Economy surprised analysts by recording a quarterly GDP growth of 0.2 percent in the third quarter, as reported by the federal statistical bureau Destatis. This growth defied market expectations, which had forecast a decline of 0.1 percent for the quarter. A key driver behind this increase was the rise in final consumption expenditures by both the government and households, which bolstered economic activity during this period.
Despite this positive quarterly performance, the German economy faced challenges on a year-on-year basis, contracting by 0.2 percent in the third quarter of 2024 after adjusting for price and calendar factors. This annual contraction underscores a troubling trend, as the economy has been shrinking since the first quarter of 2023 through to the first quarter of 2024, only managing to achieve a stagnation with zero percent growth in the second quarter of this year.
The third quarter's results reflect a broader struggle within the German economy, which has now failed to post any annual growth for the last seven quarters. This persistent downturn signals significant economic difficulties, even as the latest quarterly figures provide a glimmer of hope for recovery.
Overall, while the quarterly growth is a positive sign, the continued annual contraction highlights ongoing economic vulnerabilities. Policymakers and analysts will be watching closely to see if this growth trend can be sustained in the coming months, especially in the face of global economic uncertainties.
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