{"id":154035,"date":"2025-10-30T21:11:08","date_gmt":"2025-10-30T21:11:08","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/154035\/"},"modified":"2025-10-30T21:11:08","modified_gmt":"2025-10-30T21:11:08","slug":"germanys-economy-stagnates-in-third-quarter-as-exports-fall","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/154035\/","title":{"rendered":"Germany&#8217;s economy stagnates in third quarter as exports fall"},"content":{"rendered":"<ul data-testid=\"Summary\" class=\"summary-module__summary__QjADA\">\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Germany&#8217;s GDP stagnates in Q3 amid declining exports<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Chancellor Merz&#8217;s fiscal measures face delays<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Employment growth remains weak, says labour office<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Inflation stays above target<\/li>\n<\/ul>\n<p>BERLIN, Oct 30 (Reuters) &#8211; Germany&#8217;s gross domestic product stagnated in the third quarter, data showed on Thursday, highlighting the struggle Europe&#8217;s biggest economy faces in regaining momentum as exports dwindle.<\/p>\n<p>The GDP stagnation was in line with forecasts, preliminary data from the statistics office showed, after Germany&#8217;s economy shrank by 0.3% in <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/europe\/german-economy-shrank-03-second-quarter-us-tariffs-slowed-exports-2025-08-22\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">the previous quarter<\/a> as weak global demand and U.S. import tariffs weighed on exports.<\/p>\n<p data-testid=\"promo-box\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__promo-box__hVl8h\"> Sign up  <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/europe\/german-economy-stagnates-q3-2025-10-30\/undefined?location=article-paragraph&amp;redirectUrl=%2Fworld%2Feurope%2Fgerman-economy-stagnates-q3-2025-10-30%2F\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">here.<\/a><\/p>\n<p>Germany was spared a recession &#8211; defined as two consecutive quarters of negative growth &#8211; thanks to rising corporate investment, especially in equipment, Germany&#8217;s Federal Statistical Office said.<\/p>\n<p>&#8220;The U.S. tariff shock and intense competition with China will continue to make things difficult for export-oriented industries,&#8221; said Alexander Krueger, chief economist at Hauck Aufhaeuser Lampe.<\/p>\n<p>POLICY RESPONSEEarlier this month, the economy ministry<br \/>\n <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/europe\/german-economy-ministry-lifts-2025-growth-forecast-02-2025-10-08\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">slightly raised<\/a> its growth forecast for this year to 0.2%, as well as predicting 1.3% growth in 2026 and 1.4% growth in 2027.<\/p>\n<p>Hopes for growth have been fuelled mainly by German Chancellor Friedrich Merz&#8217;s promise of a sharp rise in infrastructure and defence spending. But those measures are taking longer than expected to translate into better conditions on the ground.<\/p>\n<p>&#8220;The German government&#8217;s fiscal package is not expected to boost the economy until next year, but this will not be sustainable due to the lack of reforms,&#8221; Commerzbank chief economist Joerg Kraemer said.<\/p>\n<p>Persistently high unemployment, which hit 3.02 million in August &#8211; its <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/business\/retail-consumer\/german-unemployment-tops-three-million-first-time-decade-2025-08-29\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">highest in a decade<\/a> &#8211; is an added concern.<\/p>\n<p>The number of people out of work unexpectedly declined slightly in October, labour office figures showed on Thursday, slipping by about 1,000 to 2.973 million &#8211; an unchanged seasonally-adjusted rate of 6.3%.<\/p>\n<p>Labour Office head Andrea Nahles cautioned against undue optimism, however, saying that employment growth remained weak.<\/p>\n<p>&#8220;Overall, the autumn recovery has been sluggish so far,&#8221; she said in a statement.<\/p>\n<p>Consumer sentiment remains fragile, weighed down by inflation and worries over job security, with a corresponding indicator from GfK dropping to -24.1 points for November, according to data from Tuesday.<\/p>\n<p>FRAGILE SPENDING POWER<\/p>\n<p>Helena Melnikov, the head of the German Chamber of Industry and Commerce (DIHK), pointed to high costs and excessive bureaucracy as factors that are holding back recovery.<\/p>\n<p>&#8220;These are poor conditions for asserting oneself in a foreign trade environment that has become more challenging,&#8221; she said.<\/p>\n<p>A further dent to spending power is being dealt by persistently high inflation, though preliminary data from the national statistics office showed a slight easing to 2.3% year on year in October.<\/p>\n<p>Analysts polled by Reuters had forecast EU-harmonised inflation slowing to 2.2% from last month&#8217;s 2.4%.<\/p>\n<p data-testid=\"SignOff\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__extra_small__8Buss body-module__full_width__kCIGb body-module__extra_small_body__Bfz20 sign-off-module__text__LQAMP\">Reporting by Kirsti Knolle, Natascha Koch, Writing by Friederike Heine, Editing by Madeline Chambers, Alexander Smith and Ed Osmond<\/p>\n<p data-testid=\"Body\" dir=\"ltr\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__element__5eCce article-body-module__trust-badge__5mS3f\">Our Standards: <a data-testid=\"Link\" 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Employment growth remains 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