Bundesbank said in its monthly report that the -0.2% contraction in Q3 GDP in Germany was due to “a strong temporary one- off effect in the automotive sector.” Meanwhile, “private consumption was temporarily absent as a driving force of the economy”.
However, after that “setback” the German economy is “expected to see fairly strong growth again in the final quarter of 2018”. Bundesbank said output and exports of motor vehicles are “expected to return to normal before the year is out”. And, “manufacturing sector as a whole likewise looks set for marked growth.” “Private consumption is expected to re- assume its role as a major economic driver”. And, “the still outstanding income and labour market prospects are expected to again provide a boost.”
