Germany Confirms Slow Growth In Q3

The German Federal Statistical Office (Destatis) on Friday confirmed the German economy slowed in the third quarter of 2012.

Adjusted for price, seasonal and calendar effects, German GDP increased by 0.2 percent in the three months from July to September, 0.1 percentage point lower than in the second quarter. In the first three months this year, Germany saw a quarter-on-quarter economic growth of 0.5 percent.

Destatis said positive contributions were made by foreign demand. In the third quarter of 2012, exports of goods and services were up 1.4 percent compared with the second quarter. In the same period, imports increased by a lesser extent of 1 percent.

When it came to domestic demand, however, “there were mixed signs,” said the Wiesbaden-based institute. Final consumption expenditure of households and government was up on the previous quarter, by 0.3 percent and 0.4 percent respectively. Gross fixed capital formation in construction increased too, by 1.5 percent.

At the same time, gross fixed capital investment in machinery and equipment recorded a 2 percent decline in the third quarter, continuing its year-long downward trend.

The German government and leading economic institutes have adjusted their 2012 growth estimates to 0.8 percent.

Xinhuanet