Germany avoids recession

Germany narrowly avoided a recession in the third quarter by logging marginal growth of 0.1 percent, official data showed Friday.

German gross domestic product (GDP) expanded by 0.1 percent in the three months from July to September, after contracting by 0.1 percent in the second quarter, the country's federal statistics office said. A recession is defined as two consecutive quarters of shrinking GDP.

The rise in GDP in the eurozone's largest economy was good news for the 18-member bloc, which was also lifted by better-than-expected growth of 0.3 percent in France in the third quarter.

"The numbers show that Germany's economy is in better shape than people think," Stefan Kipar, an economist with BayernLB told the Reuters news agency.

In Germany, the uptick in GDP was thanks to more spending from private households and a rise in exports over imports. Those factors offset declines in investment in equipment and in the construction sector.

But not all economists were rosy about the positive growth.

"Business is running at half throttle," said Martin Wansleben, chief executive at the Association of German Chambers of Industry and Commerce. "The weak growth in the third quarter shows how Germany is suffering from international crises and a loss of trust in domestic politics."

cjc/uhe (AFP, Reuters)