Germany, Europe’s largest economy, grew more than initially estimated in the third quarter of 2022. A review published this Friday (25) by Destatis, as the country’s statistics agency is known, shows that the Gross Domestic Product (GDP) ) German expanded by 0.4% in the third quarter compared to the second.
Compared to the same period last year, the German economy recorded growth of 1.3% between July and September.
At the end of October, Destatis had originally calculated an increase of 0.3% in German GDP in the third quarter compared to the second and a gain of 1.2% in the annual comparison.
Germany ensured a positive performance in the period despite having faced record levels of inflation and a serious energy crisis in the midst of Russia’s war in Ukraine.
Consumer confidence rises
Consumer confidence in Germany is expected to continue stabilizing in December, although it remains at a very low level. Market research group GfK’s forward-looking consumer sentiment index predicts confidence will rise to -40.2 in December from -41.9 in November. Economists polled by The Wall Street Journal had expected a -40.0 reading.
“Long-standing consumer fears of skyrocketing energy prices have eased somewhat, which is having a slightly positive impact on consumer sentiment,” explained Rolf Buerkl, consumer specialist at GfK. He added that despite small improvements, the situation remains challenging.
GfK uses sub-index data for the current month to derive a sentiment figure for the next month.
Income expectations rose moderately for the second straight month, rising to -54.3 in November from -60.5 in October. Consumer confidence regarding income is benefiting from the drop in energy prices in recent weeks, according to the survey.
Economic expectations also improved, rising to -17.9 in November from -22.2 in October. After the slight gains in the previous month, the propensity to buy fell to -18.6 in November from -17.5 in the previous month.
(Source: Dow Jones Newswires and Estadão Content)