German’s gross domestic product (GDP) expanded by a record 8.5% in Q3, more than expected 8.2%, according to the Federal Statistical Office’s press release. The growth was a recovery from a plunge of 9.8% in the second quarter driven by higher household spending and soaring exports.
- Despite the quarter expansion, the outlook is clouded by the second wave of coronavirus infections and partial lockdowns to control the disease’s spread.
- A contraction in the service sector is expected to lower the GDP in the fourth quarter, while lockdowns in other countries are likely to hit export-oriented businesses.
- Germany expects a 1% drop in GDP in the fourth quarter.
- Overall, the price, seasonally and calendar-adjusted GDP, was 4.0% lower in Q3 2020 than in the fourth quarter of 2019 before the coronavirus.
- The GDP in Q3 2020 was down a price-adjusted 3.9% from the Q3 2019.
German stocks are gaining. DAX is up 0.96%
