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German third-quarter slowdown expected after strong start of year - Finance Minister

Published 21/11/2016, 03:03
Updated 21/11/2016, 03:03
© Reuters. The famous skyline with its banking district is pictured in early evening next to the Main River in Frankfurt, Germany

BERLIN (Reuters) - A slowdown in the German economy during the third quarter was expected after strong growth in the first six months of the year, the finance ministry said on Monday, adding that private consumption and state spending were the main drivers.

The German economy grew by 0.2 percent for the quarter after it expanded 0.4 percent in the three months to June as exports weakened.

The ministry said in its monthly report that the labour market remained solid and job creation was positive in the autumn.

"Job creation was maintained albeit at a somewhat weaker pace than in the first two quarters," the ministry said. "Unemployment fell further."

The government last month raised its 2016 growth forecast to 1.8 percent from 1.7 percent previously, which would be the strongest expansion rate in half a decade.

© Reuters. The famous skyline with its banking district is pictured in early evening next to the Main River in Frankfurt, Germany

Leading economic institutes are even predicting a growth rate of 1.9 percent this year.

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