(MENAFN - Qatar News Agency) The German economy has been on the wane in the third quarter after a slump in investment undercut a solid performance by Germany's export machine and a pickup in private consumption.
The statistics office said gross domestic product (GDP) in Europe's biggest economy expanded by a meagre 0.2 % quarter on quarter in the three months to end of September, confirming the preliminary figures it released last week, according to German's news agency (DPA).
This followed a 0.3% growth rate in the second quarter. "Despite the European recession, the German economy continues its growth, although at a slightly slower pace," the statistics office said. Exports rose by 1.4% in the third quarter, while imports gained 1%. This resulted in a net trade contribution to GDP of 0.3%.
Compared to the same time last year, exports jumped 4.2% in the third quarter, helped along by strong demand from nations outside the debt-hit eurozone. Imports were up 1.6% on the year. Meanwhile, private consumption rose 0.3% quarter-on-quarter, government consumption grew by 0.4%. However, third-quarter corporate investment dropped 1.7% during the quarter amid a deepening sense of gloom in industry upon the economic recession and austerity measures gripping the Eurozone.
Also, cutbacks by companies in investment led to a sharp drop of 8% in investment in machinery and equipment.