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Macroeconomic outlook report: Germany

Third quarter of 2019

During the third quarter of 2019, Germany's GDP registered a deceleration of 0.12 p.p. in its y/y growth rate, which stood at 0.31%. This was mainly due to the performance of internal demand. In the labor market, unemployment rate remained constant at a rate of 3.10%, while the year-over-year growth rate of employment slowed by 0.17 p.p. to 0.86 %. Inflation registered a rate of 1.47%, 0.24 p.p. below the rate registered on 2Q19. Finally, during the third quarter of 2019, the average $/€ exchange rate decreased with respect to 2Q19, by 0.02 p.p., amounting to 1.11 $/€.

Macroeconomic overview

  • During the third quarter of the year, the German economy recorded a deceleration in its year-over-year GDP growth rate of 0.12 p.p. with respect to the previous quarter, to 0.31%. This behavior was mainly due to the performance of internal demand, which experienced a reduction of 1.05 p.p. to a rate of 0.44%.
  • External demand experienced a higher growth rate, driven by the acceleration of exports of 1.41 p.p. and a deceleration of imports of 1.04 p.p.
  • In the labor market, the unemployment rate remained constant with respect to the previous quarter at a rate of 3.10% and the year-over-year growth rate of employment slowed by 0.17 p.p. compared to the second quarter of 2019, to 0.86%.
  • The nominal euro/dollar fell by 0.02 $/€ when compared to 2Q19 reaching an exchange rate of 1.11 $/€ in 3Q19.
  • Inflation stood at 1.47% during the third quarter of 2019, following a deceleration of 0.23 p.p. from the previous quarter. This was mainly due to decreases in energy and crude-oil prices.

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© GMS Management Solutions, S.L., 2020. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.