Germany's GDP rises by 0.4% QoQ; rises above pre-Covid level for the first time

The German economy expanded 0.4% quarter-on-quarter in Q3 2022, slightly better than a 0.3% rise in the first estimate and following a 0.1% growth in Q2.

"The GDP increased, as had been the case in the first two quarters (+0.8% and +0.1%, respectively), despite difficult general conditions in the global economy such as the continuing Covid-19 pandemic, delivery bottlenecks, continuing price rises and the war in Ukraine, the German Federal Statistical Office (Destatis) said in a statement.

The country's economic performance in the third quarter of 2022 was mainly based on household final consumption expenditure. Household final consumption expenditure rose by a total 1% compared with the second quarter (price, seasonally and calendar adjusted).

However, the government final consumption expenditure remained roughly at previous quarter's level (0.0%). Gross fixed capital formation in construction were down 1.4% (price, seasonally and calendar adjusted), as had been the case in the second quarter, whereas gross fixed capital formation in machinery and equipment rose considerably (+2.7%).

As a whole, trade with foreign countries went up, despite the difficult international situation. Due to continuing high stock of orders and improved supply chains worldwide, exports of goods and services were up 2% in the third quarter of 2022 compared with the second quarter of 2022, after price, seasonal and calendar adjustment. The increase in imports (+2.4%) was even higher than that of exports.

In the third quarter of 2022, the gross value added grew by 1.4%, buoyed by positive developments in manufacturing. This growth was achieved despite falling output in energy-intensive branches, which were particularly affected by the sharp rise in energy prices. As, at the same time, output increased especially in the automotive industry and in manufacture of machinery and equipment, the economic performance in total manufacturing rose 0.9% on the previous quarter. In most service branches, too, the economic performance was up on the previous quarter.

Gross value added in construction dropped markedly again by 4.2% in the third quarter of 2022 compared with a quarter earlier.

Germany's GDP in the third quarter of 2022 has increased by 1.2% on the same quarter a year earlier (price adjusted). It is higher by 1.3% as compared with the third quarter of 2021 (price and calendar adjusted).

Compared with the fourth quarter of 2019, the quarter before the Covid-19 crisis began, the price, seasonally and calendar adjusted GDP for the first time exceeded the pre-pandemic level in the third quarter of 2022 (+0.3%).

Germany is the fifth largest economy in the world and the largest within the Euro Area. Germany is the second largest exporter in the world and exports account for more than one-third of national output. Composition of the GDP on the expenditure side: household consumption (55%), gross capital formation (20%, of which 10% in construction, 6% in machinery and equipment and 4% in other products) and government expenditure (19%). Exports of goods and services account for 46% of GDP while imports for 39%, adding 7% to total GDP.

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