German economy switches gears, domestic growth leads the way

By Ben Walsh
November 22, 2013

Reuters’ Michelle Martin reports that German GDP grew 0.3% in the third quarter, thanks to some welcome domestic growth. Here’s Reuters’ chart of recent German GDP growth and its components:

Significantly, Martin writes, “net trade deducted 0.4% points from third-quarter growth.” The European Commission is investigating the German economy’s alleged over-reliance on exportsUS Treasury Department tied Germany’s export-led economic strategy to slow growth elsewhere in Europe.

Separately, Martin reports that a poll of 7,000 companies showed German business sentiment “surged to its strongest in a year and a half in November”.

On Tuesday, the ZEW survey of showed the confidence of German institutional investors was at a four-year high. Martin writes the ZEW survey “suggested the economy could expand by 0.5% in the fourth quarter”.

One comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/

Could our government take lessons from Germany? Yes – but will it? We now have Obama running around to donors on more fundraising trips and trying to tell us the economy is getting soooooo much better.

Posted by AZreb | Report as abusive