Germany leads growth in the Eurozone economy higher

Marco Green
November 14, 2017

The German economy grew by 3.3 percent annually in the third quarter of 2017, according to fresh data released on November 13 by Destatis, the Federal Statistical Office in the country.

Unadjusted figures showed Germany's gross domestic product (GDP) rose by 2.3 percent when compared with the same period previous year. Instead, German economic momentum was largely sustained by foreign demand as global and Eurozone growth accelerated between July and September.

Germany continued to display why its economy remains the engine behind the eurozone's solid performance this year as growth continued at a "high rate" in the third quarter. In turn, German businesses had experienced greater confidence and responded with investments into their equipment.

On Monday, Poland's central bank revised upwards its GDP growth forecast for the country, saying it expected the economy to expand 4.2% this year as a whole.

The broader European economy grew by 0.6 per cent in the third quarter, according to a slight upward revision of growth published today by the European Commission.

The German economy's strength is likely to help shore up Chancellor Angela Merkel's political authority as she attempts to cobble together an untested coalition led by her conservative bloc amid fraught talks between the parties.

While third-quarter government and consumer spending remained essentially stable, Destatis said corporate investment "made a positive contribution to economic growth".

The German government last month sharply upgraded its full-year growth forecast to 2.0 percent, up from 1.5 percent previously. "This is substantially higher than expected in spring (1.7 percent)".

Economic activity in Europe's largest economy has been brisk and its jobs market buoyant, despite a stronger euro eroding the price-competitiveness of German exports, geopolitical tensions and the threat of heightened trade protectionism.

Other reports by Click Lancashire

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