German Economy Grows 0.2% in Third Quarter as Inflation Eases in October
Public spending and a fuel tax cut helped offset weaker exports and investment as core inflation fell to 2.1%, officials and economists said.
- On Friday, preliminary data from Destatis showed Germany's gross domestic product grew 0.2% in the July-September period, slightly outperforming the 0.1% forecast by analysts.
- Chancellor Friedrich Merz's defense and infrastructure spending provided a major boost to Europe's biggest economy, though exports weakened from "the very dynamic trend" seen in the first half of 2026.
- Record-Low water levels on the Rhine river hindered manufacturing sectors, as the central bank warned last week that "restrictions on inland water transport put pressure on industry" during the third quarter.
- While Germany's unemployment rate held steady at 6.4% in October, France's economy, the eurozone's second biggest, shrank 0.1% in the third quarter, highlighting regional divergence.
- ING economist Carsten Brzeski noted the economy remains on track for its best performance since 2022, observing, "Some would say there's life in the old dog yet.
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Slow growth in energy, goods and services prices, core inflation fell to 2.1 percent
Amid fuel tax cut, German inflation slows
German inflation slowed more than expected in October, the first month of a government fuel tax cut, adding to evidence that Europe's largest economy could prove more resilient than anticipated despite disruptions linked to the war in Iran. Gross domestic product increased slightly more than expected in the third quarter, though economists warned the expansion remained heavily reliant on government spending. Inflation eased to 2.8 percent year-o…
The government's fuel discount in particular strongly dampened the increase in consumer prices in October: after 3.3 percent inflation in September, the inflation rate in October was 2.8 percent, according to the Federal Statistical Office in Wiesbaden on Friday. Prices for services also rose slightly less. Energy, according to the provisional statistics office, rose by 12.2 percent compared to the same month of the previous year. In September, …
The German economy grew by 0.2% in the third quarter of 2026 compared to the previous three months, according to preliminary data from the Federal Statistical Office Destatis, published on October 30. The result exceeded analysts' expectations for an increase of 0.1% and shows that Europe's largest economy continues to recover, albeit at a slower pace. According to the German public media ARD, citing official statistics, economic growth in the s…
Federal Statistical Office: WIESBADEN (ots) - Consumer price index, October 2026: +2.8% year on year (provisional) -0.2% year on year (provisional) Harmonized consumer price index, October 2026: +2.8% year on year (provisional) -0.1% year on year ...
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