News Flash
FRANKFURT, Germany, Nov 22, 2024 (BSS/AFP) - German growth in the third
quarter was downgraded Friday, with data showing it registered even weaker
expansion than previously thought, in a new blow for Europe's struggling top
economy.
The final reading confirmed the eurozone's traditional growth engine narrowly
dodged a technical recession, with meagre growth of 0.1 percent quarter-on-
quarter.
But that was down from a preliminary figure of 0.2 percent, representing more
bad news as the economy struggles with headwinds from a slowdown in its
crucial manufacturing sector to weak demand for its key exports.
The slight expansion "shouldn't be taken as a sign of a rebound, but rather
as a confirmation that the German economy is stuck in stagnation," said ING
economist Carsten Brzeski.
"Even if the German economy avoided a summer recession, a winter recession is
looming."
The economy was hit in the third quarter by a 1.9-percent fall in exports
compared to the previous quarter, as well as weaker investments in areas such
as machinery, equipment and construction, according to statistics agency
Destatis.
Consumption, however, rose by 0.3 percent quarter-on-quarter, providing vital
support, according to Destatis.