German economy grows record 8.2 percent in third quarter

Reuters

Posted at Oct 30 2020 06:22 PM

A general view one day before the official opening of the new Terminal 1 at the new Berlin-Brandenburg Airport in Schoenefeld near Berlin, Germany October 30, 2020. Picture taken through glass. Hannibal Hanschke, Reuters


BERLIN - The German economy grew by a record 8.2 percent in the third quarter as Europe's largest economy partly recovered from its worst-ever recession caused by the COVID-19 pandemic, data from the Federal Statistics Office showed on Friday.

The jump in output from July to September was the biggest since the office began collecting quarterly growth data in 1970 and was stronger than the 7.3 percent increase predicted by economists in a Reuters poll.

It followed an unprecedented drop of nearly 10 percent in the second quarter as household spending, company investments and trade collapsed during the first wave of the pandemic.

The bigger-than-expected rebound in the third quarter was driven by higher private consumption, rebounding investments in equipment and very strong exports, the statistics office said.

Separately, the German government on Friday revised upwards its estimate for gross domestic product this year.

It now expects GDP to shrink by 5.5 percent in 2020 compared with a previous estimate for a 5.8 percent decline. Adjusted for calendar effects, it sees the economy shrinking by 5.9 percent.

The government confirmed its 2021 forecast for the economy to grow by 4.4 percent.

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