"The German economy stagnated in the third quarter, narrowly dodging a recession, official data showed Thursday, hit by weakening exports as the country struggles to recover from a long downturn. Europe's top economy posted zero growth from July to September compared with the previous quarter, according to preliminary data from federal statistics agency Destatis. This followed a 0.2 percent contraction in the second quarter. Analysts surveyed by financial data firm FactSet had forecast a 0.1 percent expansion in the third quarter."
"Germany's crucial exports "were down compared with the previous quarter", the agency said, although investment in machinery and equipment provided some support. The figures show that "things are still not going well in Germany", LBBW bank economist Jens-Oliver Niklasch said. A planned public spending blitz on infrastructure and defence "will not be enough in the long run", he said, adding: "Growth-promoting reforms are the order of the day.""
"The eurozone's traditional growth engine shrank in both 2024 and 2023, hammered by a manufacturing slump, high energy costs and weak demand for exports. US President Donald Trump's tariff onslaught has added to the headwinds, as the United States is a major market for German products, from cars to pharmaceuticals and industrial equipment. Growth was boosted at the start of the year as US companies rushed to build up stocks of goods before Trump's tariffs kicked in, but that momentum has since reversed."
Germany recorded zero economic growth in the third quarter, narrowly avoiding a recession after a 0.2 percent contraction in the second quarter. Exports were down compared with the previous quarter and remained a key drag, while investment in machinery and equipment offered limited support. Annual inflation eased to 2.3 percent in October from 2.4 percent in September, slightly above forecasts. The eurozone growth engine contracted in both 2024 and 2023 because of a manufacturing slump, high energy costs and weak export demand. US tariffs and reduced US demand have added headwinds, reversing early-year stockpiling-driven momentum.
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