Germany skirts recession with 0.1% growth in Q3

[FRANKFURT] Germany, Europe's biggest economy, narrowly escaped a new recession with minimal growth of 0.1 per cent in the the third quarter, official data showed on Friday.

German gross domestic product expanded by 0.1 per cent in the period from July to September, after shrinking by 0.1 per cent in the preceding three months, the federal statistics office said in a flash estimate.

Originally, the contraction in the second quarter had been reported as 0.2 per cent. Recession is technically defined as two consecutive quarters of falling GDP.

The data are good news for the wider eurozone, especially after the region's second-biggest economy, France, notched up better-than-expected growth of 0.3 per cent in the third quarter, separate data in Paris showed.

In Germany's case, positive impulses came primarily from private households, which ramped up their spending strongly, Destatis said.

In addition, foreign trade also provided a support for the economy, with exports rising more strongly than imports, the statement said.

On the negative side, investment declined, particularly in equipment, but construction investment also declined marginally.

A detailed breakdown of the different GDP components will be published on November 25.

AFP