Germany has narrowly avoided recession after reporting slight growth in the third quarter, according to officially released figures. The preliminary estimate showed that the economy expanded by 0.1% in the three months to the end of September. This follows a contraction of 0.1% in the second quarter, which was revised down from an initial 0.2% slowdown estimate. A recession is generally defined as when an economy reports two consecutive quarters of negative growth.
Economic activity has picked up slightly but remains too weak to ensure the job creation our country needs.
French Finance Minister Michel Sapin
As Europe’s biggest economy, the impact of a German recession would be felt across the whole economic bloc. The slight growth in quarter-on-quarter growth for Q3, reported by the Federal Statistical Office, was broadly in line with economists’ expectations. The German figures were released just minutes after France said its economy grew by 0.3% in the same period. In Germany’s case, boosts primarily came from private households, spurred by increased spending. In addition, foreign trade also helped lift the economy, with exports rising more strongly than imports. Germany is heavy reliant on exports of luxury and high-end engineering, chemicals and pharmaceuticals as a driver of the economy.