Germany’s Economic Growth Slows

Germany’s economy grew by 0.2% between July and September, according to the latest official statistics.

Germany is the largest economy in Europe, but has weakened in recent months due to the region’s debt crisis.

The latest figure is down from growth of 0.3% recorded in the second quarter and the 0.5% figure seen in the first three months of this year.

Germany’s growth was driven mainly by “foreign demand”, federal statistics office agency Destatis said.

Last month, the German government cut its forecast for economic growth in 2013 from 1.6% to 1%, blaming the reduction on the eurozone crisis and weaker growth in emerging nations in Asia and Latin America.

Germany’s gross domestic product (GDP) grew by 4.2% in 2010 and 3% in 2011.

“The negative data seen in recent weeks and months could very well lead to negative growth” in the fourth quarter, said analysts at Natixis Bank.

Unlike most of its partners in the 17-nation eurozone, Germany has mainly escaped the worst effects of the crisis that has threatened to unravel the bloc.

Until now, it has benefited from the weaker euro, making its exports more competitive outside the eurozone.

However, German consumers are still spending. “Consumption by both private households and government was higher than in the second quarter when adjusted for price, seasonal and calendar variations,” Destatis said.

BBC