Ex­ports, in­vest­ment buoy Ger­man econ­omy in Q3

Cape Times - - BUSINESS REPORT -

GER­MAN eco­nomic growth ac­cel­er­ated in the third quar­ter as buoy­ant ex­ports and in­vest­ment pro­pelled the ex­pan­sion in Europe’s largest econ­omy, the Fed­eral Statis­tics Of­fice said yes­ter­day.

Sea­son­ally ad­justed gross do­mes­tic prod­uct (GDP) rose by 0.8 per­cent on the quar­ter, the data showed. This was stronger than the con­sen­sus fore­cast of 0.6 per­cent in a Reuters poll and marked an in­crease from 0.6 per­cent in the sec­ond quar­ter.

The econ­omy grew 2.3 per­cent on the year in the third quar­ter, un­ad­justed data showed. This was in line with a con­sen­sus fore­cast.

Ad­justed for cal­en­dar ef­fects, the yearly growth rate rose to 2.8 per­cent in the July-Septem­ber pe­riod from 2.3 per­cent in the pre­vi­ous quar­ter, the of­fice said. This was the strong­est read­ing since the be­gin­ning of 2014.

The fig­ures give Chan­cel­lor An­gela Merkel a tail­wind as her con­ser­va­tive bloc tries to forge a tricky three­way coali­tion gov­ern­ment with the pro-busi­ness Free Democrats and the left-lean­ing Greens, an al­liance untested on a na­tional level.

PHOTO: REUTERS

Eco­nomic growth will boost Chan­cel­lor An­gela Merkel’s stand­ing.

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