This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-15733372
The article has changed 7 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
German and French economies grow in third quarter | German and French economies grow in third quarter |
(about 1 hour later) | |
Both the German and French economies recorded growth in the third quarter of the year, according to official data. | Both the German and French economies recorded growth in the third quarter of the year, according to official data. |
Germany's gross domestic product (GDP) grew by 0.5% in the quarter, and growth in the April-to-June period was also revised up to 0.3% from 0.1%. | Germany's gross domestic product (GDP) grew by 0.5% in the quarter, and growth in the April-to-June period was also revised up to 0.3% from 0.1%. |
The annual growth rate was 2.5%, down from the second quarter's 3% rate. | The annual growth rate was 2.5%, down from the second quarter's 3% rate. |
In France, the economy grew by 0.4%, better than expected, although its second quarter figure was revised downwards to show GDP fell by 0.1%. | In France, the economy grew by 0.4%, better than expected, although its second quarter figure was revised downwards to show GDP fell by 0.1%. |
The French statistics institute said increased household spending was behind the rise in the third quarter, while Germany's statistics office said domestic demand was the main reason for its growth. | The French statistics institute said increased household spending was behind the rise in the third quarter, while Germany's statistics office said domestic demand was the main reason for its growth. |
Observers expect the German economy to contract sharply in coming months. | |
On Monday, the Organisation for Economic Co-operation and Development (OECD) estimated that German GDP would shrink by 1.4% in the last quarter of 2011. | |
Last week, Germany's panel of economic advisers, known as the "wise men", said that while they expected 3% growth this year, they were expecting growth of just 0.9% next year, just below the latest government forecast of 1%. | |
Market tensions | |
On the financial markets, the difference between interest rates on French and German bonds reached a record on Tuesday. | |
The gap between the yields - or implied interest rates - on German and French 10-year bonds widened to 1.726 percentage points. | |
The yield on French bonds rose to 3.5%, while on German bonds it fell to 1.775%. | |
That implies that France would pay about twice as much as Germany to borrow money if those rates were in force when the countries came to issue new bonds. |