Home Business Federal statistical office: German economy’s performance drops for the first time in...

Federal statistical office: German economy’s performance drops for the first time in 2015

0
970

German gross domestic product (GDP) in the third quarter for the first Time in more than three years. It was the price-, seasonally – and calendar-adjusted 0.2 percent lower than in the second quarter of 2018, as the Federal statistics office. This is in comparison to the previous quarter, the first decline since the first quarter of 2015, as economic output fell by 0.1 per cent.

One reason for the current decline in Export. According to preliminary calculations, there were in the third quarter of 2018, less exports but more imports than in the second quarter of the year. Germany as an exporting nation is suffering seems to be increasingly under the trade conflicts, the trigger, especially the United States.

To fall in trouble in the car industry according to Economists, the new exhaust emissions standard WLTP. Because not all auto approval for a new registration had models in a timely manner, had the manufacturer cut production.

The private consumption was a driver of growth. The consumer consumed less than in the previous quarter. The historically good position on the labour market, and wage increases were provided in the past for buying mood of consumers in Europe’s largest economy, and the economy is driven.

government final consumption expenditure, including social benefits and salaries of employees, according to the figures, easily. The company invested a little more in equipment, buildings and other facilities than in the second quarter.

Federal Bank chief remains optimistic

Bundesbank President Jens Weidmann, performance, looks, despite the recent decline of the economy is no reason for pessimism. It is driven by a drop in Production and put in the motor Vehicle industry. “Rashes of the Numbers above and below are not allowed to disguise the fact: The economic recovery in Germany and in the Euro area remains intact.” The growth is slowing down, mainly because the factories are busy and barely skilled workers.

Especially in Germany, lack of it more to professionals than to demand, said Weidmann. “That’s why, for me, is also clear that we must not lose sight on the long road back to normality unnecessary time.” The European Central Bank (ECB) had promised to end its bond purchases for the new year. “But this is conceptual only as a first step, a degree of monetary-policy normalization,” said Weidmann. The key interest rate, the ECB is leaving at zero percent.

experts are expecting in the current final quarter of growth. Bigger jumps, but for the time being. The economy also lowered due to weak summer quarter, its forecast for the growth in the whole year to 1.6 percent. In 2019, it is intended to extend only to 1.5 percent. The panel of experts is more pessimistic than the Federal government that says, for both years, 1.8 percent advance.