We expect overall growth for Germany at 0.6% next year as consumption recovers. But we see downside risks stemming from a more backloaded industry recovery and a weaker labour market. The economy grew by only 0.1% q/q in Q3 after data revisions. The GDP details paint a picture of an economy struggling to gain momentum as net exports and investment dragged growth lower. We don't expect an economic rebound in Q4 as industry performance stays lacklustre and monetary policy remains restrictive.
Germany: Sentiment weighs on the outlook for next year