Consumer growth saved German economy in Q3 – ING

By FXStreet FXStreet (Delhi) – Carsten Brzeski, Research Analyst at ING, notes that the German GDP growth in Q3 was confirmed at 0.3% QoQ and the second estimate of German GDP growth shows that growth in the third quarter was mainly driven by domestic factors.

Key Quotes

“Private consumption and government consumption grew by 0.6% and 1.3% QoQ respectively. At the same time, domestic investments dropped by 0.3% QoQ and net exports shaved off 0.4 percentage points of growth. The fact that inventories contributed positively to GDP growth (0.2 percentage points) does not really bode well for the fourth quarter.”

“In fact, at least in the third quarter, the German economy has finally become what many international critics had been demanding for a long while: a domestically-driven economy. Interestingly, since the third quarter of 2014, private consumption private consumption has now been on the strongest non-stop expansion since the start of the monetary union. Record high employment, increased nominal wages, low interest rates and low energy prices remain an important growth driver for the economy.”

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Source:: FX Street