Germany’s federal statistics agency, Destatis, revealed its quarterly estimate of the nation’s GDP on Wednesday, indicating a modest growth of 0.2% in the third quarter of 2024. This follows a contraction of 0.1% in the previous quarter.
The estimated growth in the third quarter has allowed Germany to narrowly avert a recession, typically characterised by two consecutive quarters of negative growth. This unexpected result surprised many, as the government had anticipated a slight decline following the output of the second quarter.
The largest economy in Europe has faced challenges due to a decline in industrial orders, which has weakened its export-driven performance. Diminished demand, rising raw material costs, and increased energy prices have collectively contributed to a sluggish market in Germany.
German Economy Minister Robert Habeck remarked, “This is still far from what we need, but at least it is a ray of hope.
“The economy is proving more robust than previously forecast, and the technical recession expected by many has not materialised.”
Destatis also reported that inflation has risen slightly from 1.6% in September, its lowest level in over three years, to 2% in October, according to preliminary data.
Furthermore, the statistics agency indicated that unemployment remained largely unchanged from the previous month, with approximately 2.8 million people out of work. Andrea Nahles, head of Germany’s Federal Employment Agency, noted that the expected autumn increase in employment figures “had failed to materialise this year.”
Also, experts pointed out that this is the first time in two decades that unemployment has not seen a noticeable decrease in the latter months of the year. Nevertheless, Germany’s long-term unemployment figures remain relatively low.
Frances Ibiefo
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