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Based on the preliminary report, German's Q3 GDP expanded by 0.32% qoq. The economy posted 0.44% growth in Q2. The domestic demand is likely to lead the growth rate in this quarter.
"We expect private and government consumption to have increased by 0.4% and 0.3% qoq, respectively, while net exports should have made a negative contribution. According to the qualitative information in the flash release, investment is likely to have been the main reason for the weaker-than expected GDP growth", says Societe Generale.
However, a slower growth rate is likely in Q4 as the weaker global outlook may hit trade and investment of the country.
