German economy fell in the third quarter of 2018, the first time in three years. As Destatis federal economic agency reported, GDP lost 0.2% compared to the previous quarter.
Although the volume of the decline is compratively small, even such a fall for the German economy became record-breaking since 2011.
The key reason of the economic slowdown was unfavourable situation with the external trade, Destatis notes: export volume declined by 0.9%, and its part of the gross domestic product influenced a loss of one percentage point.
The exports revenue decline hit ivestmens and consumers: both sectors lowered the GDP by 1% totally.
The economy still grew on yearly basis, but the accumulated growth is rapidly decresing its volume: it was 2.3% in the second quarter and only 1.1% left in the beginning of the fourth quarter.
All of the Eurozone macroeconomic data slides following Germany: Business Activity PMI index fell to 51.5 points from 52.0 in November.
The slowdown has also been noted in the United States, although it’s been rather moderate there (from 55.7 to 55.4 points), while it’s going to have a threatening character in Europe, Loco Invest head of analythical department Kirill Tremasov noted.
Business activity index fell in France to 50.7 from 51.2 points, approcahing closely the red line which divides decline and growth.