Germany is “bound” for a recession as GDP contracts by 0.1 percent in Quarter Three (Q3), an analyst has said.
Justin Lowe, currency analyst at ForexLive, said: “No changes to the initial estimate and this confirms that the German economy is bound for a recession as Q4 growth is also set to contract, albeit perhaps less worse than anticipated in the months before this.”
The Federal Statistical Office (Destatis) also reported that the result published in the first release of 30 October 2023 has therefore been confirmed.
Ruth Brand, president of the Federal Statistical Office (Destatis), said: “After the weak economic development seen in the first half of 2023, the German economy began the second half of the year with a slight drop in performance.”
Economic performance was virtually stagnant in the first two quarters of the year (first quarter: 0.0 percent, second quarter: +0.1 percent).
According to the Federal Statistical Office’s most recent report, final consumption expenditure was two percent lower compared with a year earlier. Here, persistently high prices continued to have a significant effect on food and beverages, restaurant and accommodation services and clothing.
In each of these categories, considerably less was spent than in the previous year, after adjustment for price variations. By contrast, there were positive signs from the transport sector, partly due to more purchases of cars.
Foreign trade decreased substantially year on year. Exports of goods and services declined by 3.8 percent (price adjusted) in the third quarter of 2023 on the same quarter a year earlier.
An even larger drop was observed for imports (-5.7 percent) in the same period. This was mainly due to a substantial decline in goods imports (-8.2 percent), in particular mineral fuel imports.
We’ll be bringing you the very latest updates, pictures and video on this breaking news story.
For the latest news and breaking news visit:** **
Stay up to date with all the big headlines, pictures, analysis, opinion and video on the stories that matter to you.
Follow our social media accounts here on 
