Germany Q3 2018 GDP shrank 0.2% on the previous quarter (worst since 2015), did Eurozone really grow 0.2%?

The Federal Statistical Office (Destatis) reported that the German GDP shrank by 0.2% in the third quarter (vs the second quarter) of 2018. Growth was +1.1% on the same quarter a year earlier following increases of 2.3% in the second quarter (calendar adjusted: +2.0%) and 1.4% in the first quarter of 2018 (calendar adjusted: +2.1%).

German Q3 2018 GDP

The slight quarter-on-quarter decline in the gross domestic product was mainly due to the development of foreign trade. According to provisional calculations, exports were down while imports were up in the third quarter of 2018 compared with the second quarter of the year. As regards domestic demand, there were mixed signals. While gross fixed capital formation both in machinery and equipment and in construction was higher than in the previous quarter, final consumption expenditure of households declined. Government final consumption expenditure was slightly higher than in the previous quarter.

Eurozone growth

We reported earlier that Eurozone Q3 2018 growth is estimated at 0.2% but with Italy having grown 0%, German GDP falling 0.2% and France growing at just 0.4% will the growth number for Eurozone be revised downwards? Possibly

 

Related:

Eurozone Q3 2018 GDP up by 0.2% and European Union Q3 2018 GDP up by 0.3%, both lowest since 2013; Italy grew 0%; Eurozone economic sentiment falls for the 10th consecutive month

U.S. Q3 2018 GDP estimated at 3.5% as consumer spending boosts growth but business spending stalls

UK Q3 2018 GDP increased by 0.6% (growing 3 times quicker than the Eurozone and at the fastest pace since 2016) but business investment fell

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