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Eurozone economy slows in third quarter | Eurozone economy slows in third quarter |
(34 minutes later) | |
Economic growth in the eurozone slowed to 0.3% in the third quarter of the year, latest figures have shown. | |
The rate was lower than expected, and compared with a pace of 0.4% recorded in the previous quarter. | |
The pace of expansion in Germany, the eurozone's largest economy, slowed, but France returned to growth. | |
The European Central Bank (ECB) is widely expected in December to expand its stimulus programme, which aims to lift inflation and support growth. | |
Higher imports | Higher imports |
Germany's economy grew by 0.3% in the July-to-September period, down from 0.4% in the previous quarter. | Germany's economy grew by 0.3% in the July-to-September period, down from 0.4% in the previous quarter. |
The country's Federal Statistics Office said the economy had shown "continued moderate growth", helped by increased domestic consumption. | |
But it added foreign trade "had a downward effect on growth, because the increase in imports was markedly larger than that of exports". | |
The French economy also grew by 0.3% in the same period, but this marked a pick-up from zero growth previously. | The French economy also grew by 0.3% in the same period, but this marked a pick-up from zero growth previously. |
The French statistics agency INSEE said a rise in imports had also weighed on the country's growth rate. | The French statistics agency INSEE said a rise in imports had also weighed on the country's growth rate. |
But it added that the economy saw an increase in household spending, and that production of goods and services picked up. | But it added that the economy saw an increase in household spending, and that production of goods and services picked up. |
"The [GDP] figure... confirms that we have left in 2015 the period of very weak growth that France had experienced since 2011," said French Finance Minister Michel Sapin. | |
Among the other major eurozone economies, the growth rate in Italy slowed to 0.2%, which was worse than expected, while the Spanish economy grew by 0.8%. | |
Greece's economy contracted by 0.5%, while Finland's shrank by 0.6%. | |
The Eurostat figures showed the eurozone's economy grew by 1.6% in the third quarter compared with a year earlier. | |
"The third-quarter slowdown in eurozone GDP growth appears to have been largely the consequence of negative net trade," said Howard Archer, economist at IHS Global Insight. | |
"This suggests that the benefit to eurozone exporters coming from the weak euro was offset by muted global growth." | |
More QE? | |
Expectations are growing that the European Central Bank (ECB) will expand its monetary stimulus programme at its meeting next month. | |
In October, the bank said it would "re-examine" the policy, and on Thursday, ECB president Mario Draghi said the bank was ready to extend its policy if needed. | |
In January this year, the ECB started a quantitative easing (QE) stimulus programme worth at least €1.1 trillion in an attempt to avoid deflation and boost growth in the eurozone. | |
The bank has committed to buy €60bn of bonds a month until September 2016. | |
The most recent figures showed inflation in the eurozone returned to zero in October from September's -0.1%. | |
Speaking to the European Parliament on Thursday, Mr Draghi said: "Signs of a sustained turnaround in core inflation have somewhat weakened. | |
"We have always said that our purchases would run beyond end-September 2016 in case we do not see a sustained adjustment in the path of inflation." |