BERLIN, Oct. 30 (Xinhua) -- Germany's economy expanded by 0.2 percent in the third quarter of 2026, slowing from the first half of the year as exports weakened and investment declined, preliminary data from the Federal Statistical Office (Destatis) showed Friday.
The expansion, slightly above economists' expectations of 0.1 percent, marked the fourth consecutive quarter of growth in Europe's largest economy, following increases of 0.4 percent in the first quarter and 0.3 percent in the second.
Consumer spending edged up in the July-September period, while investment declined, according to Destatis. The strong export growth seen in the first half of the year also slowed noticeably in the third quarter, it said.
Germany's Economy Ministry warned earlier this month that the economic growth was likely to slow temporarily in the third quarter, citing disruptions to inland shipping caused by historically low water levels, weaker global demand for energy-intensive goods, and the erosion of purchasing power due to higher energy prices.
Carsten Brzeski, global head of macro at ING Research, said the German economy had continued its recent upswing, but cautioned that a short-term rebound did not necessarily signal a sustainable recovery.
He said the outlook remained heavily dependent on the impact of the government's fiscal stimulus, while longstanding structural problems remained unresolved and the German industry continued to undergo a difficult transition.
Reforms to restore international competitiveness were still urgently needed, Brzeski added.
Looking ahead, the German Institute for Economic Research (DIW) expected growth to pick up noticeably in the fourth quarter, supported by improving industrial activity.
"The German economy appears to be picking up pace towards the end of the year, driven largely by a recovery in industry after years of weakness," said Geraldine Dany-Knedlik, head of economic forecasting at DIW.
However, she warned that the recovery was not yet broad-based, with households spending held back by high prices and a weak labor market, while private investment remained subdued.
In its autumn forecast released earlier this month, the German government projected the economy would grow by 1.3 percent this year, before slowing to 1.1 percent in 2027 and 0.6 percent in 2028. ■