Jakarta, CNBC Indonesia – The German economy grew more than previously estimated in the third quarter, according to revised official data on Friday (25/11/2022). The increase came amidst high inflation and an energy crisis.
Europe’s largest economy grew by 0.4% between July and September compared to the second quarter of 2022. This was slightly better than the 0.3% growth previously calculated by the Federal Statistics Service Destatis.
Analysts expect a contraction in the third quarter due to the impact of the Russia-Ukraine war on the European economy.
“Overall, the German economy remains strong,” Destatis said in a statement, citing AFP, Friday (25/11/2022).
“Gross Domestic Product grew despite the generally difficult conditions in the global economy such as the continuing Covid-19 pandemic, shipping bottlenecks, continuing price hikes and the war in Ukraine,” he said.
A separate survey on Friday showed that German consumer confidence had picked up again after a long period of decline, in the latest indication that fears are easing.
Pollster GfK’s forward-looking barometer registered minus 40.2 points for December, an increase of 1.7 points from November.
Germany was heavily dependent on Russian gas before the war, and Moscow’s move to cut off the flow through the Nord Stream 1 pipeline sparked fears of energy shortages and skyrocketing heating bills this winter,
The record high inflation of 10% in September weakened the purchasing power of consumers and businesses. While the German government predicts the economy will shrink by 0.4% in 2023.
German GDP Growth Stagnant, Recession Still Lurking