Monday , May 29 2023

Germany's economy shrinks in third quarter for the first time in three years due to foreign trade and the automotive sector


The German economy shrank for the first time since 2015 in the third quarter of this year, as global trade disputes have affected the traditional driving force of exports, creating fears that a decade of growth has stalled.

The Federal Statistical Office said Wednesday that gross domestic product (GDP) in Europe's largest economy declined by 0.2% compared to the previous quarter, compared with a 0.1% decline in Reuters forecasts.

Compared to the same period last year, the economy grew by 1.1% between July and September, according to revised data in the light of the calendar.

Economists surveyed by Reuters forecast economic growth of 1.3 percent year-on-year.

This decline in GDP in the third quarter is the first since the first quarter of 2015.

The government stressed last month that the third quarter was weak and attributed to bottlenecks in the automotive sector resulting from the introduction of new pollution standards and other factors.

Concerns are growing in the German economy, starting the ninth consecutive year of growth, on the consequences of global trade disputes and the dissolution of Britain with the EU.

Last month, German industrial and commercial halls cut growth forecasts for 2018 to 1.8% from 2.2% and expect a slowdown to 1.7% next year as the economy faces rising domestic and overseas risks.

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