Wiesbaden (dpa) – The German economy is back in spring after the crown-related collapse. Gross domestic product (GDP) rose sharply 8.2 percent in the July-September period compared to the previous quarter.
The Federal Statistical Office in Wiesbaden announced this on the basis of preliminary data. However, Europe’s largest economy is not at the top yet. Compared to the fourth quarter of 2019, the quarter before the global crown crisis, GDP was 4.2 percent lower.
Growth in the third quarter compared to the previous quarter was reportedly driven by higher spending from private consumers and a strong increase in exports. In addition, companies invested more in machinery and other equipment.
In the second quarter of the year, GDP collapsed dramatically after much of public life was shut down as a result of the crown. At the beginning of the year, the economic output of Europe’s largest economy had already fallen compared to the previous quarter.
However, the pace of recovery has slowed recently. According to economists, the rise in new corona infections and the recently decided partial lockdown in November could slow the rally towards the end of the year. The president of the Institute for World Economics, Gabriel Felbermayr, expects significant economic losses for the German economy.
The damage is likely to be less than during the March and April shutdown. However, growth in the fourth quarter will likely stop compared to the previous quarter. German industry expects the restrictions to have a major impact on economic activity and consumer confidence in November.
The mood in companies had already clouded in October due to the increasing number of infections. “Companies are much more skeptical about developments in the coming months,” Ifo president Clemens Fuest said recently. Consumers’ purchasing mood also declined. According to the Nuremberg consumer research company GfK, optimism declined markedly.