Eurozone Growth Beats Expectations, Germany Dodges Recession
- Third-quarter GDP up 0.4%, economists saw 0.2% expansion
- Surprise German growth adds to faster momentum in France
Germany’s failure to sustain momentum is having a growing impact on its labor market.
Photographer: Krisztian Bocsi/BloombergThis article is for subscribers only.
The euro area’s economy expanded more strongly than expected in the third quarter — with even Germany avoiding the recession it was widely tipped to endure.
Growth in the 20-nation currency bloc quickened to 0.4%, while economists had predicted it would hold steady at 0.2%, as momentum in France accelerated and stayed strong in Spain. Germany’s surprise 0.2% increase in gross domestic product caught analysts off guard, though the reading for the previous three months was revised down sharply.