Key facts
- Germany's economy showed no growth in the third quarter.
- Gross domestic product remained unchanged compared to the second quarter.
- The country narrowly avoided a technical recession.
- Investments in machinery and vehicles increased, but exports declined.
- The economy grew by 0.3% in the first quarter and declined by 0.2% in the second quarter.
Germany's economy stagnated in the third quarter, with gross domestic product (GDP) remaining unchanged from July to September, according to preliminary findings from the Federal Statistical Office. This narrowly avoided a technical recession, which is typically defined as two consecutive quarters of economic contraction. The German economy had previously grown by 0.3% in the first quarter and declined by 0.2% in the second quarter, based on revised figures. While investments in machinery and vehicles saw an increase during the summer months, exports of German products decreased. The economy ministry had previously noted a slowdown in economic momentum at the start of the third quarter, citing fading demand in energy-intensive industries and weakening domestic consumption due to high energy prices. Helena Melnikov, Chief Executive of the Association of German Chambers of Commerce and Industry (DIHK), described the situation as a lack of economic momentum, with companies facing high costs and extensive reporting requirements. The Federal Employment Agency also reported weak employment growth and low demand for new employees. The Kiel Institute for the World Economy forecasts minimal growth for the full year, with GDP remaining at 2019 levels. The German economy's stagnation also impacted the broader eurozone, which saw a 0.2% GDP growth in the third quarter, with France growing by 0.5% and Italy stagnating.