Thursday , May 13 2021

Germany's economy shrinks in the third quarter for the first time in three years due to foreign trade and the automotive industry Latest news

The German economy has fallen for the first time since 2015 in the third quarter of this year, as global trade disputes have affected the traditional growth engine for exports, giving rise to fear that a decade of growth has stopped.

The Federal Bureau of Statistics said Wednesday that gross domestic product (GDP) in Europe's largest economy fell 0.2 percent from the previous quarter, compared with a decline in the Reuters forecast by 0.1 percent.

Compared to the same period last year, the economy increased by 1.1 per cent between July and September according to revised data in the light of the calendar.

Economists demanded by Reuters predict economic growth of 1.3 percent year on year.

This decline in GDP in the third quarter is the first since the first quarter of 2015.

The government indicated last month that the third quarter was weak and attributable to bottlenecks in the automotive industry due to the introduction of new pollution standards and other factors.

Concerns grow in the German economy and enter its ninth year following growth, the consequences of global trade disputes and Britain's breakthrough with the EU.

Last month, the German Chamber of Commerce and Commerce reduced its growth forecast for 2018 to 1.8 percent from 2.2 percent and expected a decline of 1.7 percent next year as the economy faces increased risk at home and abroad.

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