Germany and France report GDP growth

The eurozone’s two largest economies, Germany and France, have both recorded GDP growth for the third quarter of 2011.

After a minor contraction of 0.1% in the second quarter, France has exceeded analyst expectations with 0.4% growth in the third quarter. Germany’s GDP grew from 0.3% in the second quarter to 0.5%.

Year-on-year, France’s GDP has grown by 1.6%, nearing the estimate made by the Organisation for Economic Co-operation and Development (OECD) earlier this year of 1.7% growth across 2011.

Germany’s year-on-year growth was revised upwards in the second quarter to 2.9% from 2.7% and the latest estimates have revealed year-on-year growth of 2.6% in the third quarter.

The latest official figures will come as welcome news to both countries, France as it has been fighting off rumours of a sovereign downgrade and Germany after unemployment was revealed to be creeping up in October for the first time since January 2010.

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