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Global supply chain disruptions have hit the German economy, prompting a revision down to the quarterly growth rate, as exports, investment and manufacturing production contracted.

At 1.7 per cent, the German economy grew less than the 1.8 per cent estimated, according to official data published by Destatis.

The figure prompted concern from economists over the fourth quarter. “Growth in consumers’ spending is now easing as the reopening bump fades,” said Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics, while “the spectre of new virus restrictions indicate that a sharp slowdown lies ahead”.

Private consumption drove growth, expanding 6.2 per cent, but many other sectors dragged on the German economic recovery from the hit of the pandemic, the national statistics office showed on Thursday.

Exports fell 1 per cent from the previous quarter, factory output was down 2.2 per cent and investment in equipment dropped 3.7 per cent. Government spending also fell.

The economy grew thanks to the recovery in the hospitality and entertainment sectors, reflecting the easing of coronavirus restrictions. The category that includes entertainment and recreation increased 13.5 per cent. Output in the hospitality sector rose 5.3 per cent.

Germany, the largest manufacturer in the eurozone, was hit hard by bottlenecks in the global supply chain that are resulting in shortages of goods and delayed supplier deliveries across factories, particularly in the auto sector.

The economy grew less than other European peers in the third quarter, particularly France, which reported a 3 per cent expansion and Italy with 2.6 per cent growth.

Gross domestic product was 1.1 per cent down from the pre-pandemic fourth quarter of 2019.

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