German economy avoids recession

The German statistics office said that their economy has narrowly avoided recession, growing 0.1% in the third quarter.

With the economy contracting 0.1% in the April-to-May quarter, another negative figure would have meant Germany entering recession.

Elsewhere, France also posted stronger-than-expected growth of 0.3% for the third quarter.

Figures for other Eurozone nations will be published during Friday morning.

But with the Eurozone’s two largest economies having reported growth, the third quarter figures for the Eurozone as a whole are expected to be higher.

The statistics office said German consumers had increased spending strongly during the third quarter period, and that exports had also risen.

The figures will be seen as good news for the wider Eurozone, whose sluggish growth has forced policymakers to cut interest rates and introduce other stimulus measures.

Senior Eurozone economist, at Berenberg Bank, Christian Schulz told the BBC that confidence among German businesses was low, in large part because of worries about the Ukraine crisis.

The German economy, for so long the Eurozone’s driving force, had been “a drag” in recent months, he said.