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Eurozone economic growth slows to 0.1% | Eurozone economic growth slows to 0.1% |
(35 minutes later) | |
The economy of the eurozone grew by just 0.1% in the July-to-September period, down from 0.3% growth in the previous quarter. | The economy of the eurozone grew by just 0.1% in the July-to-September period, down from 0.3% growth in the previous quarter. |
The weak growth levels being seen in the eurozone are among the reasons why the European Central Bank cut its main interest rate to 0.25% last week. | The weak growth levels being seen in the eurozone are among the reasons why the European Central Bank cut its main interest rate to 0.25% last week. |
Earlier, figures showed that France's economy shrank 0.1% in the third quarter of the year. | Earlier, figures showed that France's economy shrank 0.1% in the third quarter of the year. |
German growth slowed to 0.3% from 0.7% in the previous quarter. | German growth slowed to 0.3% from 0.7% in the previous quarter. |
Figures from Italy showed its economy shrank by 0.1%, after a 0.3% contraction in the second quarter. | Figures from Italy showed its economy shrank by 0.1%, after a 0.3% contraction in the second quarter. |
Improvements | |
There were better signs of economic activity from some of the worst-hit countries in southern Europe. | |
Spain returned to quarter-on-quarter growth for the first time since the first quarter of 2011, albeit with growth of just 0.1%. | |
Portugal's economy grew by 0.2% in the quarter. | |
The recovery across the currency bloc is expected to continue, with 1.1% growth predicted by the European Commission for next year and 1.7% in 2015. | |
Weak exports | Weak exports |
When France's economy grew by 0.5% in the second quarter of the year, it pulled the country out of recession, although economists had not expected that level of growth to be sustained. | When France's economy grew by 0.5% in the second quarter of the year, it pulled the country out of recession, although economists had not expected that level of growth to be sustained. |
Figures from the national statistics agency Insee showed that exports dropped by 1.5% in the third quarter, while business investment fell by 0.6%. | Figures from the national statistics agency Insee showed that exports dropped by 1.5% in the third quarter, while business investment fell by 0.6%. |
However, France's Finance Minister, Pierre Moscovici, said he still believed the economy would grow by 0.1-0.2% over 2013 as a whole. | However, France's Finance Minister, Pierre Moscovici, said he still believed the economy would grow by 0.1-0.2% over 2013 as a whole. |
"The productive forces are starting up again, production is recovering," Mr Moscovici told French radio. | "The productive forces are starting up again, production is recovering," Mr Moscovici told French radio. |
"We knew the third quarter would mark a pause, it's not a surprise, it's not an indicator of decline, it's not a recession." | "We knew the third quarter would mark a pause, it's not a surprise, it's not an indicator of decline, it's not a recession." |
Germany's statistics office Destatis also cited weak exports as a factor holding back growth. | Germany's statistics office Destatis also cited weak exports as a factor holding back growth. |
"The positive impulses in the third quarter came exclusively from within Germany," Destatis said. | "The positive impulses in the third quarter came exclusively from within Germany," Destatis said. |
"Private household and public spending were somewhat higher than in the preceding quarter. And investment in equipment and construction also increased compared with the second quarter. | "Private household and public spending were somewhat higher than in the preceding quarter. And investment in equipment and construction also increased compared with the second quarter. |
"By contrast, the trade balance put a brake on GDP growth. While imports continued to rise, exports showed little momentum compared with the preceding quarter," it said. | "By contrast, the trade balance put a brake on GDP growth. While imports continued to rise, exports showed little momentum compared with the preceding quarter," it said. |