Economic growth slows in Europe

Growth in Europe’s largest economy slowed in the third quarter of the year, while growth across the eurozone as a whole also decelerated compared with the second quarter.

GDP growth in Germany slowed to 0.7% in the third quarter of the year, compared with the 2.3% expansion registered in the second quarter of the year, according to Destatis.

According to the German stats agency the slowdown was expected given the fact the 2.3% growth in the second quarter, which was revised up from 2.2%, was the country’s largest economic expansion since reunification.

Meanwhile, according to flash estimates for the third quarter issued by Eurostat, GDP expanded by 0.4% both in the eurozone and in the largest 27 countries in the European Union (EU27). This compares with the 1% GDP both areas recorded in the second quarter of the year. (article continues below)

In terms of individual countries, growth in France slowed from 0.7% in the second quarter to 0.4% between July and September, and Italy’s recovery fell from 0.5% to 0.2%.

The Czech Republic posted the strongest growth of the quarter, expanding 1.1%, followed by Austria and Slovakia whose GDP grew 0.9%.

Unsurprisingly, Greece remains in recession, with its economy shrinking 1.1%. Third quarter stats for Ireland have yet to be published, while in Spain there was zero growth.

Meanwhile, according to Eurostat, America’s GDP accelerated to 0.5% in the third quarter, up from 0.4% in the second quarter.