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{"id":94712,"date":"2024-10-30T12:48:00","date_gmt":"2024-10-30T12:48:00","guid":{"rendered":"https:\/\/financeworld24.com\/ray-of-hope-german-economy-grows-0-2-ending-recession-fears\/"},"modified":"2024-10-30T12:48:00","modified_gmt":"2024-10-30T12:48:00","slug":"ray-of-hope-german-economy-grows-0-2-ending-recession-fears","status":"publish","type":"post","link":"https:\/\/financeworld24.com\/ray-of-hope-german-economy-grows-0-2-ending-recession-fears\/","title":{"rendered":"\u2018Ray of hope\u2019: German economy grows 0.2% ending recession fears"},"content":{"rendered":"
\n

Germany\u2019s economy grew in the three months to the end of September, ending fears that Europe\u2019s largest economy would slip back into recession.<\/p>\n

Predictions that the German economy would shrink for a second consecutive quarter proved unfounded as gross domestic product increased by 0.2% in the third quarter after a 0.3% contraction in the previous quarter.<\/p>\n

Germany\u2019s minister for economic affairs, Robert Habeck, said: \u201cThis is still far from what we need, but at least it is a ray of hope.\u201d<\/p>\n

Growth in Germany lifted the wider eurozone economy, which expanded by 0.4% in the third quarter, twice the 0.2% rate predicted by economists.<\/p>\n

<\/gu-island><\/figure>\n

Economists said the inflation shock that followed Russia\u2019s invasion of Ukraine \u2013 sparking a dramatic increase in energy and food prices that undermined business and consumer confidence across the eurozone \u2013 was beginning to ease.<\/p>\n

Alexander Kr\u00fcger, the chief economist at the private bank Hauck Aufha\u00fcser Lampe, said: \u201cUnder the weight of many structural weaknesses, the economy is sending out a sign of life. This is thanks to the consumers, who have let their guard down a little.\u201d<\/p>\n

The consultancy Oxford Economics<\/a> said the available information suggested most of the growth across the eurozone came from household and government spending, while investment continued to be restricted by high interest rates.<\/p>\n

France\u2019s economy expanded by 0.4%, up from 0.2% in the second quarter, thanks to a boost from the Olympic Games in the summer, while Spain marked itself out as Europe\u2019s growth hub, growing by 0.8%, largely due to a surge in tourism.<\/p>\n

Only Italy was among Europe\u2019s large economies to stagnate in the third quarter.<\/p>\n

Giorgia Meloni\u2019s government is officially forecasting the Italian economy will grow by 1% this year, but after downward revisions to the first two quarters, the economy minister, Giancarlo Giorgetti, said this month that the goal may be out of reach.<\/p>\n

skip past newsletter promotion<\/a><\/p>\n

Moody\u2019s Analytics\u2019 senior economist, Kamil Kovar, said the figures put to rest any questions of whether the eurozone was in recession. \u201cIt is not, and such worries were always overblown.<\/p>\n

\u201cThat said, there is a clear continuing weakness in investment, suggesting that worries about the outlook are not completely misplaced.<\/p>\n

\u201cWe believe that today\u2019s release, together with the rebound in inflation, will shut down any talk about [a] jumbo-sized cut at the December European Central Bank meeting, and we also remain skeptical about expectations of a rate cut in January.\u201d<\/p>\n<\/div>\n

Source: www.theguardian.com<\/p>\n","protected":false},"excerpt":{"rendered":"

Germany\u2019s economy grew in the three months to the end of September, ending fears that Europe\u2019s largest economy would slip back into recession. 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