Germany's GDP growth to accelerate in Q4

My FX Forum

Staff member
According to analysts of Bundesbank, the German economy faced difficulties due to a reduction in car production in the third quarter of 2018. Nevertheless, experts believe that the country's GDP growth rates should recover in the last three months of this year, since they see all the prerequisites.

For a long time it was difficult for the German car industry to obtain permission from regulators due to the new car certification system introduced by the European Union. Part of the cars had to be sold with big discounts, which also had a negative impact on the car industry.

According to the report of Bundesbank, the business climate in the country improved significantly in the third quarter, therefore, in the current quarter, it is possible for the economy to expand. The automotive sector of Germany has a number of problems, however, the indicators of other industries are high, experts noted.

Recently, the German government lowered the GDP growth forecasts to 1.8 percent from 2.3 percent in 2018 and 1.8 percent from 2.1 percent in 2019 due to the trade conflicts impact, labor shortages and problems in the automotive sector.