German Economy Avoids Recession But Not Broader Crisis

  • 3Q output unexpectedly rose 0.2% after revised 0.3% drop in 2Q
  • France, Spain also fared better, buoying broader euro zone

A worker at the Volkswagen factory in Wolfsburg, Germany, in May.

Photographer: Krisztian Bocsi/Bloomberg
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Germany’s economy, Europe’s largest, has once again avoided a technical recession but businesses and consumers keep sending warning signals that the challenges engulfing the country are becoming harder to bear.

Unexpected growth of 0.2% in the third quarter — economists had predicted a 0.1% drop — followed a steeper-than-initially-reported slump of 0.3% in the previous period, the statistics office said Wednesday.