German economy grows slightly in 3Q, staving off recession

0

BERLIN (AP) – The German economy returned to modest growth in the July-September period, averting a widely-feared recession.

The Federal Statistical Office said Thursday gross domestic product grew 0.1% compared with the previous quarter. It says, however, that the economy in the second quarter contracted 0.2%, greater than the 0.1% previously reported.

Two straight quarters of declining output is a frequently used definition of recession.

A further contraction in the third quarter had been widely expected. Still, the German government’s independent panel of economic advisers said last week there was no sign of a “broad, deep recession” or current need for a stimulus program.

Services companies and the jobs market have held up well in Germany, but the industrial sector, led by automobiles and factory machinery, has seen declines amid trade tensions.

Advertisements