Briefs of the Week
GERMAN ECONOMY KEEPS UP PACE OF
GROWTH IN THIRD QUARTER

By Rolando Arturo Leiva

22 november 2011

Heidelberg, (Germany) - According to the Federal Statistical Office based in
Wiesbaden, a significant growth showed the German economy's third quarter (July-
September 2011) comparatively to the previous quarter and regarding also the
expected growth for the whole year.

The German economy, according to this Office, grew comparatively 0.5% of Gross
Domestic Product (GDP) to the previous quarter, while the expectations of growth in
the previous quarter was revised from 0.1% to 0.3% of GDP. This means that the
German economy experimented a robust growth rate of 1.3% in the first quarter of
2011, 1.6% in the second quarter and 2.1% in the third quarter, growing, in turn, in
the latter, by 2.5% over the same quarter last year (2010).

The greatest impact on GDP growth has been, according to the same statistical
office, private consumption and domestic investment. The rise in the construction
industry was however lower than the previous quarter. Comparatively, the
contribution of the external sector to growth was also reduced.

According to chief economist of the German Institute for Economic Research, there is
however, no reason "to economic optimism," mainly because the industry has been
weakened by the economic backwardness that had happened in previous months.
Following the so-called Euro crisis, is also predicted that GDP growth for the future
can be lean.

For the full year 2011, the Institute estimates that total growth will be 3%, which
means optimal growth, and even despite poor signals derived from the so-called
crisis of the Euro, that amount of growth is considered still attainable.
Taking in account the whole of Europe, it is considered that the German economy
economy was the one that experienced the greatest growth in the Euro Zone, if
compared with the Spanish economy, stagnated during the summer, Portugal, whose
growth was reduced by 0, 4%, and France grew by 0.4%.

The Statistical Office of the European Union in turn, foresees only 0.2 GDP growth
for the whole Euro Zone next year, although the total rate of growth continues at a
strong 2.5% taking in account the same previous period.

While the German Research Institute foresees a 3% GDP growth achievable for all of
2011, the forecast indicates that will be only 1% for the entire following year, 2012 .-

Rolando Arturo Leiva
Heidelberg, Germany
22 november 2011

(Una versión de este artículo fue publicada en la News Letter - “InterEuropa Reporte”
- “La Crisis del Euro” noviembre 2011)