Germany's economy shrunk for the firs time since early 2015 and at the fastest pace in nearly six years, mainly due to weak exports and car sales, latest figures from the Federal Statistical Office confirmed on Friday.

Gross domestic product declined a seasonally and calendar-adjusted 0.2 percent quarter-on-quarter in the three months to September, after expanding 0.5 percent in the second quarter.

The latest decline in GDP was the first since the first three months of 2015 and the worst since the first quarter of 2013, when the economy shrank 0.3 percent.

The slight quarter-on-quarter decline in the gross domestic product was mainly due to the development of foreign trade, the agency said. Exports decreased 0.9 percent quarter-on-quarter, while imports grew 1.3 percent.

Domestic demand showed mixed outcomes with the gross fixed capital formation in machinery and equipment rising 0.8 percent and that in construction growing 0.9 percent.

But, household consumption decreased 0.3 percent, partly due to consumers' reluctance to buy new cars due to new emission norms. The decline was the first since the fourth quarter of 2013.

On a calendar-adjusted basis, the GDP rose 1.1 percent year-on-year following a 2 percent growth in the previous quarter.

The year-on-year gain was the smallest since the third quarter of 2013, when the economy grew only 0.7 percent.

Thus, the flash estimates released on November 14 were confirmed.

"Based on economic fundamentals, the outlook for the German economy remains rosy but don't expect a V-shaped rebound, rather a continuation of the recent roller coaster ride," ING Economist Carsten Brzeski said.

Low interest rates, a weak euro and some fiscal stimulus, as well as the reversal of adverse one-off factors, are strong arguments in favor of a growth rebound in the coming quarters, the economist noted.

In contrast, dropping capacity utilization and increasing external risks put a lid on any upside potential, he added.

Earlier this week, the OECD trimmed Germany's growth forecast for this year and next to 1.6 percent and projected 1.4 percent expansion for 2020.

Growth is expected to be backed by strong job creation and a fiscal stimulus, the think tank said.

Trade-related uncertainties and moderating world demand will weigh on exports and private consumption will accelerate due to strong wage growth and fiscal measures that increase household disposable income, the OECD added.

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