The German economy narrowly avoided recession in the third quarter after it grew by just 0.1%, thanks to a strong rise in consumer spending and small boost from foreign trade.
Some economists had feared Europe’s largest economy would sink into recession in the July-September period after a second quarter contraction, but Germany managed to match a consensus forecast for 0.1 percent growth in a Reuters poll.
The Statistics Office revised the second-quarter contraction figure to -0.1% from a previously reported -0.2%.
The German figure came as an update on the French economy eked out 0.3% growth in the third quarter, lifted by public spending and consumer shopping as well as stock variations, while investment and real estate kept contracting and weighing on the eurozone’s second-largest economy.
President Francois Hollande's Socialist government welcomed the data as a sign that it could reach its new target of 0.4% growth for the whole year.
That is less than half its initial forecast and France has said it would miss a pledge to bring its public deficit down to 3% of GDP next year because of weak growth.
"Beyond the jolts from one quarter to the next, activity has somewhat taken off but remains too weak to create the jobs our country needs," finance minister Michel Sapin said, reiterating French calls for more action to boost growth and jobs in Europe.
Reuters
