German GDP growth slows in line with neighbours

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 fell to 0.7% in the third quarter, compared with a 2.3% expansion in the second, according to Destatis, Germany’s official statistics agency.

The slowdown in growth was no surprise, given that the second-­quarter performance was the country’s largest economic expansion since reunification. (article continues below)

Meanwhile, according to flash estimates for the third quarter issued by Eurostat, GDP expanded by 0.4% both in the eurozone and in the 27 ­countries of the European Union. This compares with the 1% GDP rise in both areas in the second quarter of the year.

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

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

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

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