Germany's 3rd quarter GDP growth falls short of initial estimates

By Tuba Ongun

Germany's economy expanded by a modest 0.1% in the third quarter of 2024, falling short of the initially estimated 0.2% growth, according to revised data released on Friday.

The slight rebound in July-September followed a 0.3% contraction in the previous quarter, signaling ongoing struggles for Europe’s largest economy, Destatis data showed.

Household consumption showed signs of recovery, rising 0.3% quarter-on-quarter after a 0.5% drop in the second quarter. Government spending also increased, though at a slower pace of 0.4%, compared to 1.6% previously.

By contrast, fixed capital investment painted a less optimistic picture, with machinery and equipment investments falling by 0.2% and construction investments declining by 0.3% during the quarter.

On an annual basis, the Europe's largest economy shrank 0.3%, deeper than the initially reported 0.2% contraction, underlining persistent economic pressures.