Germany’s GDP to decline by 0.3pc in Q3 | 2018-11-04

Germany’s GDP to decline by 0.3pc in Q3

4 November, 2018 12:00 AM printer

BERLIN: The German think tank of the Kiel Institute for the World Economy (IfW) predicted on Friday that German economic output in the third quarter (Q3) of 2018 would decline by approximately 0.3 percent.

The IfW’s calculations are based on a preliminary estimate recently published by the European statistical office Eurostat, which include unpublished data on Germany’s gross domestic product (GDP). Official data of German GDP will be published by the Federal Statistical Office (Destasis) in mid-November, reports Xinhua.

According to the IfW, the decline in economic output in Germany was due to production losses in the automotive industry caused by the introduction of the new test standard for exhaust gases and consumption figures for cars —the worldwide harmonized light-duty vehicles test procedure (WLTP).

“German manufacturers did not complete the new test procedure for all vehicle types in time and therefore had to reduce production in the third quarter,” IfW stated. “In addition, transportation problems in inland shipping as a result of the low water levels of German rivers may have hampered production in other sectors of the economy, such as the chemical industry.”