GDP data release from Destatis

Germany's Q3 GDP Revised to 0.1% Growth; Economy Contracts 0.3% YoY

Nov 22, 2024, 07:16 AM

Germany's economy expanded by a meager 0.1% quarter-on-quarter in the third quarter of 2024, revised down from the initial estimate of 0.2%, according to data from Destatis. On a year-on-year basis, GDP contracted by 0.3%, missing forecasts of a 0.2% decline. The slight growth helped the country avoid an official technical recession, yet concerns remain as industrial production has fallen by approximately 10% over the past five years, and private consumption shows only modest gains of 0.3% after a 0.5% decline in the previous quarter. Employment decreased by 0.1% quarter-on-quarter, indicating weakness in the labor market. Government expenditures increased by 2.5%, while capital expenditures saw a substantial decline of 5.7%. Analysts warn that a winter recession may still be looming, given the lack of significant economic momentum since 2019 and the challenges posed by Germany's export-led model amid global uncertainties.