Berlin (AFP)
Germany escaped Thursday the official entry into recession expected by many economists, its gross domestic product grew by 0.1% in the third quarter compared to the previous quarter, according to the Federal Office of Statistics.
Destatis, however, revised down its second quarter figures: GDP fell more sharply than initially announced over this period, yielding 0.2% instead of 0.1%, still in seasonally adjusted data.
Confirming the trends of recent months, German growth has "primarily" been supported "by consumption", with an increase in household spending but also that of the state, says Destatis.
The building continues to perform well, but "investment in equipment has declined compared to the previous quarter," a trend that reflects the sluggishness of the manufacturing sector for over a year.
Once the country's economic engine, the industry suffers mainly from trade disputes between Washington and its major partners, but also from more specific factors such as the impact of successive droughts on shipments in chemicals or the difficulties of its car manufacturers.
Conversely, domestic demand remains buoyed by the strength of the labor market, with an unemployment rate of 5.0% in October, which remains close to its lowest level since the reunification of the country.
Destatis has also revised up GDP growth in the first quarter, now 0.5% compared to the fourth quarter of 2018 instead of 0.4%. For the year 2019, the German government expects a growth of 0.5%, before a re-acceleration to 1% next year.
© 2019 AFP