BERLIN, Nov 24 Reuters Germany39;s economy shrank slightly in the third quarter compared with the previous three months, data from its statistics office showed on Friday.

The figure confirmed an initial estimate, published in late October, that saw Europe39;s largest economy shrink by 0.1.

After the weak economic development seen in the first half of 2023, the German economy began the second half of the year with a slight drop in performance, said Ruth Brand, president of the statistics office.

Germany has been among the weakest economies in Europe this year as high energy costs, weak global orders and higher interest rates have taken their toll.

In the second quarter, Germany39;s economy had grown by 0.1 after stagnating in the first three months of the year.

Adjusted gross domestic product GDP contracted by 0.4 yearonyear in the third quarter.

Private consumer spending, which accounts for about twothirds of GDP, was 0.3 lower than in the previous quarter, the statistics office said. Government consumer spending increased for the first time in more than a year by 0.2, it added.

A court ruling that blocked the transfer of unused funds from the pandemic to green investment and blew a 60 billion euro 65.44 billion hole in the government39;s budget has led to major uncertainty, particularly among industry, about planned investments.

Government austerity measures could lead to an additional dampening of growth, said VP Bank Chief Economist Thomas Gitzel, adding it…