The German economy stagnated in the third quarter, narrowly dodging a recession, official data showed Thursday, hit by weakening exports as the country struggles to recover from a long downturn.
Europe鈥檚 top economy posted zero growth from July to September compared with the previous quarter, according to preliminary data from federal statistics agency Destatis.
This followed a 0.2 per cent contraction in the second quarter.聽Analysts surveyed by financial data firm FactSet had forecast a 0.1 per cent expansion in the third quarter.
Germany鈥檚 crucial exports 鈥榳ere down compared with the previous quarter鈥�, the agency said, although investment in machinery and equipment provided some support.
The figures show that 鈥榯hings are still not going well in Germany鈥�, LBBW bank economist Jens-Oliver Niklasch said.
A planned public spending blitz on infrastructure and defence 鈥榳ill not be enough in the long run鈥�, he said, adding: 鈥楪rowth-promoting reforms are the order of the day.鈥�
Annual inflation in Germany eased in October to 2.3 per cent, from 2.4 per cent a month earlier, according to preliminary data from Destatis.
But the fall was slower than anticipated, with analysts surveyed by financial data firm FactSet having predicted a figure of 2.2 per cent for October.
The eurozone鈥檚 traditional growth engine shrank in both 2024 and 2023, hammered by a manufacturing slump, high energy costs and weak demand for exports.
US President Donald Trump鈥檚 tariff onslaught has added to the headwinds, as the United States is a major market for German products, from cars to pharmaceuticals and industrial equipment.
Growth was boosted at the start of the year as US companies rushed to build up stocks of goods before Trump鈥檚 tariffs kicked in, but that momentum has since reversed.
Official data released Thursday showed the Italian economy also stagnated in the July-to-September after falling in the previous quarter.
Meanwhile the French economy grew by a faster-than-expected 0.5 per cent in the third quarter, despite a political crisis over the country鈥檚 massive debt and deficit.
The eurozone economy also managed a faster-than-expected 0.2 per cent expansion in the quarter.
