German economy grows 0.4 pct in Q3 on quarterly basis despite difficult conditions-Xinhua

German economy grows 0.4 pct in Q3 on quarterly basis despite difficult conditions

Source: Xinhua| 2022-11-26 00:10:00|Editor: huaxia

BERLIN, Nov. 25 (Xinhua) -- Germany's gross domestic product (GDP) in the third quarter (Q3) of 2022 rose by 0.4 percent quarter-on-quarter, 0.1 percentage points above an initial estimate, the Federal Statistical Office (Destatis) said on Friday.

Europe's largest economy showed "notable resilience in spite of the looming energy crisis and high inflation," Axel Lindner, Deputy Head of the Department of Macroeconomics at the Halle Institute for Economic Research (IWH), told Xinhua on Friday.

Inflation in Germany climbed to 10.4 percent in October, the highest level since 1990, according to official figures. The development was mainly driven by rising energy and food prices, which were up by 43 percent and 20 percent year-on-year, respectively.

Government expenditures in Q3 roughly remained at the previous quarter's level and Germany's economic performance was mainly carried by private consumption, growing 1 percent over the previous quarter, according to Destatis.

Earlier this month, the German Council of Economic Experts (GCEE), the official advisory body to the German government, predicted in its annual report that the country's economy would slide into recession in 2023, with GDP declining by 0.2 percent.

Other economic institutes are confirming the negative outlook. "When energy cost pressures will massively be felt in all sectors of the economy in the coming winter, gross domestic product will in all probability decrease in Germany," IWH expert Lindner said.