Exports boost German growth in Q3

German economy expands 0.8% in third quarter

German economy expands 0.8% in third quarter

Gross domestic product-the broadest measure of goods and services produced in an economy-grew at an annualized rate of 3.3%, compared with 2.6% in the second quarter, the Federal Statistical Office, Destatis, said Tuesday.

Carsten Hesse, European economist at German bank Berenberg, said: "So far, the Catalan political turmoil, the political uncertainty in Italy ahead of the spring 2018 elections and sticky Brexit negotiations have had no measurable negative impact on the Eurozone economy".

"Exports grew faster in the third quarter than imports", a statement by the Federal Statistical Office read.

The preliminary figure, adjusted for seasonal swings, beat expectations as analysts surveyed by Factset had forecast 0.6 percent growth.

Gross domestic product accelerated to 2.8% in the third quarter when compared with the same period previous year - up from 2.3% in the three months ended June, according to Tuesday's data.

In the third-quarter data release, Destatis pointed to the "positive contributions.from foreign trade" as exports outpaced imports.

Government and consumer spending "remained rather stable" in the third quarter, it added, while noting that investments had increased, particularly "in machinery and equipment".

Destatis also revised upwards its first-quarter figure, saying the German economy accelerated by 0.9 percent in the first three months of 2017 instead of the earlier reported 0.7 percent.

The German economy ministry last month sharply upgraded its full-year growth forecast to 2.0 percent, up from 1.5 percent previously. Illustrating this trend, Spain's economy is widely expected to muster growth north of 3% this year.

Europe's largest economy has in recent years been powered by domestic demand, helped by record-low unemployment, low inflation and an influx of migrants in 2015.

On November 9, the European Commission raised its growth forecast for the euro area.

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