In 2023, the German government projects a 0.4 percent decline in the economy.
Afp BERLIN – According to updated official figures released on Friday, Germany’s economy expanded more than previously estimated in the third quarter amid rising prices and an energy crisis.
In comparison to the second quarter, the largest economy in Europe grew by 0.4 percent between July and September; this was somewhat higher than the 0.3 percent increase originally estimated by the federal statistics office, Destatis.
Analysts had predicted that the third quarter would see a decline as the effects of Russia’s war in Ukraine hit the economies of Europe.
Overall, the German economy is still strong, according to Destatis.
According to the report, GDP increased “despite challenging overall economic conditions in the world economy, such as the persistent COVID-19 epidemic, delivery delays, ongoing price increases, and the war in Ukraine.”
As the latest sign that fears about the severity of an impending downturn are fading, a separate survey released on Friday revealed that German consumer confidence has slightly increased again after a protracted period of decline.
Related: The German financial system is under pressure, but no signs of a property correction are visible. Bundesbank
The forward-looking barometer from pollster GfK recorded minus 40.2 points for December, up 1.7 points from November.
Before the war, Germany depended largely on Russian gas, and Moscow’s decision to stop supplying gas through the vital Nord Stream 1 pipeline has increased concerns about energy shortages and increasing heating costs this winter.
Consumers and companies are suffering as a result of the record-breaking inflation rate of 10% in September.
In 2023, the German government projects a 0.4 percent decline in the economy.