Ger­man econ­omy beats fore­casts, heads for best year since 2011

Muscat Daily - - BUSINESS -

Frank­furt, Ger­many - Ger­man growth steamed ahead in the third quar­ter, keep­ing Europe’s largest econ­omy on track for its best year since 2011.

The 0.8 per cent jump in gross do­mes­tic prod­uct (GDP) was an ac­cel­er­a­tion from the pre­vi­ous three months and topped the 0.6 per cent me­dian fore­cast in a Bloomberg sur­vey. The ex­pan­sion was driven by ex­ports and cap­i­tal in­vest­ment, and net trade made a pos­i­tive con­tri­bu­tion.

The re­port con­firms the Bun­des­bank’s pre­dic­tion that the econ­omy car­ried its strong growth mo­men­tum into the sec­ond half. That ex­pan­sion is bol­ster­ing the euro area’s up­turn and sup­port­ing the global out­look, though it also means Ger­many is po­ten­tially strain­ing against its max­i­mum ca­pac­ity, with reper­cus­sions for in­fla­tion­ary pres­sures.

“You can feel the Ger­man econ­omy is re­ally hum­ming along,” Hol­ger Sandte, chief Euro­pean an­a­lyst at Nordea Mar­kets in Copen­hagen, said be­fore the re­lease. “We are look­ing at a pretty ro­bust pic­ture so that raises the ques­tion: where is the speed limit?”

The euro strength­ened af­ter the re­lease and traded 0.2 per cent higher on the day at $1.1688 at 8:27am in Frank­furt. The sin­gle cur­rency also ad­vanced against the pound.

Newspapers in English

Newspapers from Oman

© PressReader. All rights reserved.