German economy slows in 3rd quarter as expected
2010-11-12 17:09:53
The pace of German economic growth slowed in the third quarter after a record increase in the second quarter, according to official data released Friday.
Gross domestic product (GDP) rose 0.7 percent on a quarterly basis after adjustment, said German federal statistical office (Destatis) in Wiesbaden.
The increase was not only driven by exports, but also by domestic household and government consumption as well as capital investment, it said.
The slowdown was widely expected after Germany witnessed a record 2.2 -percent increase in the second quarter, which has been raised to 2.3 percent after adjustment, according to Destatis.
The statistic office also lifted the growth rate for the first quarter from 0.5 percent to 0.6 percent after adjustment.
Compared with the same period of 2009, the country's GDP rose 4.3 percent and 3.9 percent in the second and third quarters after adjustments, Destatis said.
The number of people in work in the third quarter registered a year-on-year increase of 0.8 percent, or 307,000, reaching 40.7 million, it said.
The data echoed the positive report presented this week by an independent economic council to the government.
It predicted the German economy would rise 3.7 percent this year and 2.2 percent next year with lower unemployment and budget deficits.
Due to the worst world economic crisis since World War II, the German economy suffered a 4.7-percent contraction last year.
However, driven by strong exports growth and a pickup in domestic demand, it had quickly recovered this year and may have entered a "stable but flat growth path in the future," the independent council predicted.
Destatis said detailed results would be published on Nov. 23.