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Frankfurt am Main / AFP
German economic growth slowed more sharply than expected in the third quarter, official data showed on Tuesday, but analysts said they saw Europe’s largest economy bouncing back at year’s end.
German investors were equally upbeat, with a closely-watched survey showing a sharp jump in morale in November, although respondents questioned after Donald Trump’s shock US election victory were less optimistic about the future. Germany’s gross domestic product grew by 0.2 percent compared with the second quarter, adjusting for price, seasonal and calendar effects, the federal statistics office Destatis said in provisional figures.
But economists were unfazed by the slightly disappointing reading. Most of the growth was driven by domestic consumption, Destatis said, with rises in both household and public spending. Meanwhile, exports — long the motor of the German economy — slowed slightly compared with April to June, alongside a small increase in imports. But a positive purchasing managers’ survey — an indicator of future activity — in October and business confidence at a two-year high have stoked hopes of an economic rebound in the final quarter. Chancellor Angela Merkel was also confident about the health of the German economy.