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German economy grew by 8.5% in third quarter, but recession fears grow – The Guardian

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BERLIN (Reuters) – Germany’s gross domestic product grew by a record 8.5% in the third quarter as Europe’s largest economy partly recovered from an unprecedented plunge caused by the first wave of the COVID-19 pandemic in spring, the statistics office said on Tuesday.

The stronger-than expected rebound was mainly driven by higher household spending and soaring exports, the office said.

“This enabled the German economy to make up for a large part of the massive decline in gross domestic product caused by the coronavirus pandemic in the second quarter of 2020,” it added.

The reading marked an upward revision to an earlier flash estimate of 8.2% growth, and followed a 9.8% plunge in the second quarter.

The outlook is clouded by a second wave of coronavirus infections and a partial lockdown to slow the spread of the disease. Restaurants, bars, hotels and entertainment venues have been closed since Nov. 2, but shops and schools remain open.

Chancellor Angela Merkel and regional state premiers are planning to extend the “lockdown-light” on Wednesday until Dec. 20, according to a draft prepared for their meeting.

A contraction in the service sector is expected to weigh heavily on gross domestic product in the fourth quarter, while lockdown measures in other countries are likely to hit export-oriented manufacturers as well.

DIW economist Claus Michelsen said a decline in economic output was therefore on the cards, with initial estimates indicating a GDP drop of around 1% in the final quarter.

“Germany and many important trading partners are likely to slide back into recession,” Michelsen said.

(Reporting by Michael Nienaber and Rene Wagner; Editing by Riham Alkousaa and EKevin Liffey)

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Taiwan economy seen growing 3.61% in fourth quarter on boost from exports: Reuters poll – TheChronicleHerald.ca

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TAIPEI (Reuters) – Taiwan’s economy is expected to have expanded 3.61% year-on-year in the fourth quarter, a Reuters poll showed, as the export-dependent island continued to shake off the coronavirus jolt with a return of strong shipments and consumer confidence.

The trade-dependent economy grew 3.92% in the third quarter from a year earlier, in a solid rebound from a 0.58% contraction in the second quarter.

Taiwan, a key hub in the global technology supply chain for tech giants such as Apple Inc, is expected to have posted slightly slower gross domestic product (GDP) growth of 3.61% on year in October-December, according to the poll of 14 economists.

Predications varied widely from growth of 2.1% to as high as 6.83%.

Exports in 2020 rose 4.9% to $345.28 billion, a record high by value for a single year.

In December, Taiwan’s central bank revised up its growth outlook for this year.

It raised its 2020 forecast for GDP growth to 2.58% from 1.6% predicted in September, and projected 2021 growth at 3.68%, compared with 3.28% seen at its last quarterly meeting.

Taiwan’s exports have benefited from the work-and-study from home trend around the world, which has boosted demand for laptops, tablets and other electronics made with components supplied by firms like Taiwan Semiconductor Manufacturing Co Ltd (TSMC).

Taiwan’s largest trading partner China registered faster-than-expected economic growth in the fourth quarter of last year, with GDP up 6.5% year-on-year.

Taiwan’s preliminary fourth-quarter figures will be released on Friday. Revised figures, including details and government forecasts, will be published about three weeks later.

(Poll compiled by Carol Lee; Reporting by Ben Blanchard; Editing by Shri Navaratnam)

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Taiwan economy seen growing 3.61% in fourth quarter on boost from exports: Reuters poll – TheChronicleHerald.ca

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TAIPEI (Reuters) – Taiwan’s economy is expected to have expanded 3.61% year-on-year in the fourth quarter, a Reuters poll showed, as the export-dependent island continued to shake off the coronavirus jolt with a return of strong shipments and consumer confidence.

The trade-dependent economy grew 3.92% in the third quarter from a year earlier, in a solid rebound from a 0.58% contraction in the second quarter.

Taiwan, a key hub in the global technology supply chain for tech giants such as Apple Inc, is expected to have posted slightly slower gross domestic product (GDP) growth of 3.61% on year in October-December, according to the poll of 14 economists.

Predications varied widely from growth of 2.1% to as high as 6.83%.

Exports in 2020 rose 4.9% to $345.28 billion, a record high by value for a single year.

In December, Taiwan’s central bank revised up its growth outlook for this year.

It raised its 2020 forecast for GDP growth to 2.58% from 1.6% predicted in September, and projected 2021 growth at 3.68%, compared with 3.28% seen at its last quarterly meeting.

Taiwan’s exports have benefited from the work-and-study from home trend around the world, which has boosted demand for laptops, tablets and other electronics made with components supplied by firms like Taiwan Semiconductor Manufacturing Co Ltd (TSMC).

Taiwan’s largest trading partner China registered faster-than-expected economic growth in the fourth quarter of last year, with GDP up 6.5% year-on-year.

Taiwan’s preliminary fourth-quarter figures will be released on Friday. Revised figures, including details and government forecasts, will be published about three weeks later.

(Poll compiled by Carol Lee; Reporting by Ben Blanchard; Editing by Shri Navaratnam)

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South Korea's economy slips by most in two decades – MarketWatch

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South Korea’s economy contracted 1.0% in 2020–the worst performance in more than two decades–after its recovery lost steam in the final quarter on a resurgence of coronavirus cases.

Gross domestic product grew 1.1% during the October-December period from the prior quarter, following a 2.1% expansion on-quarter during the July-September period, showed preliminary Bank of Korea data on Tuesday.

The weaker growth data let the country, Asia’s fourth largest economy, log its weakest annual performance since 1998 at the height of the Asian financial crisis.

The latest reading–above the median forecast of 0.6% growth by economists polled by The Wall Street Journal–suggests that a new wave of Covid-19 cases challenges–though not derails–the export-driven recovery recently in the country. Stricter social distancing is in place to help curb the pandemic but also weighs on business activities and consumer spending.

The central bank data showed private consumption fell significantly in the fourth quarter while exports jumped on brisk demand for semiconductors and petrochemicals.

Year-on-year, the economy shrank 1.4% in the fourth quarter following a 1.1% contraction in the previous quarter. The median market forecast was for a 1.6% contraction in the final quarter.

The South Korean economy is viewed as remaining on track for a recovery, as the country ramps up fiscal and monetary stimulus.

The bank expects the economy to expand 3.0% in 2021.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

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