German economy switches gears, domestic growth leads the way
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”.