Economy & Politics

German economy grows significantly in the third quarter

The German economy is doing a little better than before. (Symbol image) Photo: dpa / Rainer Jensen

As reported by the Federal Statistical Office, the gross domestic product (GDP) rose by 8.2 percent compared to the previous quarter. For the year as a whole, the German government’s forecast is nevertheless bleak.

Berlin – After the historic slump in the Corona crisis, the German economy grew again strongly in the third quarter: As the Federal Statistical Office announced on Friday, the gross domestic product (GDP) increased by 8.2 percent compared to the previous quarter. According to Federal Economics Minister Peter Altmaier (CDU), these numbers are “far above expectations” that economic research institutes and the federal government had in earlier assumptions.

The development in the third quarter shows that the German economy is able to “set free growth forces” even under the conditions of the pandemic, said Altmaier. For its autumn projection presented on Friday, the government had assumed, according to him, an increase in the third quarter of only 6.6 percent.

2020 gross domestic product collapses

For 2020 as a whole, the federal government is predicting a 5.5 percent drop in GDP. Previously, she had expected a minus of 5.8 percent. Economic output is expected to increase by 4.4 percent for 2021; for 2022 an increase of 2.5 percent.

The new forecast for the current year has already taken into account the latest decisions to further tighten the corona measures by the federal and state governments, said Altmaier. For the fourth quarter, growth of 1.1 percent was initially set, which has now been reduced to 0.4 percent.

According to the Federal Statistical Office, growth in the third quarter was driven by higher private consumer spending and more investments in equipment, as well as by a sharp rise in exports. In the second quarter, GDP suffered a historic crash in the wake of the corona pandemic and fell by 9.7 percent compared to the previous quarter.

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