(Bloomberg) -- Germany’s economy expanded less than initially reported in the third quarter, another piece of bad news as the country heads for early elections.
Gross domestic product rose 0.1% in the three months through September, down from a first estimate of 0.2%, the nation’s statistics agency said on Friday. A drop in exports held back growth that was driven by spending from consumers and the government.
The data confirm that Germany has suffered a contraction in every second quarter since the final months of 2022, and the Bundesbank predicts it will only stagnate in the current period.
More recent numbers have thrown a further pall over Europe’s biggest economy, with the reelection of Donald Trump in the US and the collapse of the coalition government in Berlin earlier this month adding to uncertainty.
Chancellor Olaf Scholz’s independent panel of experts last week slashed their forecasts. They see output contracting this year and increasing just 0.4% in 2025.
A persistent manufacturing malaise that’s at the core of the country’s troubles returned to the headlines this week, with Volkswagen AG’s union calling December walkouts over planned factor closures and worker layoffs, and Ford Motor Co. announcing plans to eliminate jobs in Germany.
Berlin is inching toward early elections after the Free Democrats were ejected from the three-party coalition. Scholz is likely to lead the Social Democrats into that vote, after Defense Minister Boris Pistorius said he won’t compete to helm that group.
--With assistance from Kristian Siedenburg and Joel Rinneby.
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