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| Version 1 | Version 2 |
|---|---|
| German economy avoids recession | German economy avoids recession |
| (about 1 hour later) | |
| The German economy has narrowly avoided recession, growing 0.1% in the third quarter, the country's statistics office said. | The German economy has narrowly avoided recession, growing 0.1% in the third quarter, the country's statistics office said. |
| With the economy contracting 0.1% in the April-to-May quarter, another negative figure would have meant Germany entering recession. | With the economy contracting 0.1% in the April-to-May quarter, another negative figure would have meant Germany entering recession. |
| Separately, France posted stronger-than-expected growth of 0.3% for the third quarter. | |
| However, Italy's economy contracted 0.1% in the period. | |
| Italy has now failed to grow for 13 quarters in a row. | |
| German spending up | |
| An overall growth figure for the eurozone as a whole is due to be published at 1000 GMT. | |
| But with the eurozone's two largest economies having reported growth, the third quarter figures for the eurozone as a whole are expected to be higher. | |
| Germany's 0.1% contraction in the second quarter was a revision from a previous estimate of a 0.2% shrinkage in the April-to-May period. | Germany's 0.1% contraction in the second quarter was a revision from a previous estimate of a 0.2% shrinkage in the April-to-May period. |
| The statistics office said German consumers had increased spending strongly during the third quarter period, and that exports had also risen. | The statistics office said German consumers had increased spending strongly during the third quarter period, and that exports had also risen. |
| The figures will be seen as good news for the wider eurozone, whose sluggish growth has forced policymakers to cut interest rates and introduce other stimulus measures. | The figures will be seen as good news for the wider eurozone, whose sluggish growth has forced policymakers to cut interest rates and introduce other stimulus measures. |
| Christian Schulz, senior eurozone economist at Berenberg Bank, told the BBC that confidence among German businesses was low, in large part because of worries about the Ukraine crisis. | Christian Schulz, senior eurozone economist at Berenberg Bank, told the BBC that confidence among German businesses was low, in large part because of worries about the Ukraine crisis. |
| The German economy, for so long the eurozone's driving force, had been "a drag" in recent months, he said. | The German economy, for so long the eurozone's driving force, had been "a drag" in recent months, he said. |
| 'Positive surprise' | 'Positive surprise' |
| Earlier this week, a panel of advisors to the German government forecast growth of 1% next year following a 1.2% expansion in 2014. | Earlier this week, a panel of advisors to the German government forecast growth of 1% next year following a 1.2% expansion in 2014. |
| It pointed to "geopolitical risks" such as the Ukraine crisis, but also criticised government policies such as plans to introduce a minimum wage next year. | It pointed to "geopolitical risks" such as the Ukraine crisis, but also criticised government policies such as plans to introduce a minimum wage next year. |
| Carsten Brzeski, an economist at ING-DiBa, said that "the German economy is nowhere near any abyss,", but said recent poor growth signals that it "could use a new reform impulse rather sooner than later". | Carsten Brzeski, an economist at ING-DiBa, said that "the German economy is nowhere near any abyss,", but said recent poor growth signals that it "could use a new reform impulse rather sooner than later". |
| In France, President Francois Hollande welcomed the country's latest growth data as a sign that it could reach its new target of 0.4% growth for the whole year. | In France, President Francois Hollande welcomed the country's latest growth data as a sign that it could reach its new target of 0.4% growth for the whole year. |
| However, that is less than half an initial estimate earlier this year. | However, that is less than half an initial estimate earlier this year. |
| Nevertheless, Mr Shulz said, the French growth came as a "positive surprise". | Nevertheless, Mr Shulz said, the French growth came as a "positive surprise". |
| The 0.3% growth is the highest since the second quarter of 2013, and was slightly above the 0.2% growth forecast that many analysts had predicted. | The 0.3% growth is the highest since the second quarter of 2013, and was slightly above the 0.2% growth forecast that many analysts had predicted. |