The pace of economic recovery has slowed in Europe’s
major economies, according to official estimates.
Germany, Europe’s
largest economy, has seen a sharp slowdown in the third quarter, with growth of
0.7 per cent compared with the record expansion of 2.3 per cent it reported in
the previous three months. In France, GDP
grew by 0.4 per cent between July and September, compared with growth of 0.7
per cent in the previous quarter.
The 16 eurozone members grew 0.4% on average, down from 1 per cent growth
before.
Italy also saw its rate of recovery
decline, to 0.2 per cent from 0.5 per cent in the second quarter.
But in crisis-hit Greece,
the economy contracted at a slower rate of -1.1 per cent, compared with -1.7
per cent.
Last month, figures revealed that the UK economy had grown by 0.8 per
cent in the third quarter.
‘Solid growth’ in Germany
Germany’s growth rate in the
second quarter – now revised from 2.2 per cent to 2.3 per cent – was the
fastest since the country reunified.
Announcing its first estimate of third-quarter growth, the German statistics
office Destatis said the upturn was continuing.
But it said the slower pace had been expected, given the record result in
the second quarter.
Demand for its goods is crucial to the world’s second largest exporter,
and Destatis said both domestic and foreign demand had made a positive contribution
to growth.
It said the reasons for expansion were wide-ranging, with household and
government expenditure, demand for machinery and equipment, as well as imports
and exports all contributing.
Higher foreign demand for German-made machinery could indicate that
companies overseas are investing for future growth.
But Capital Economics said that although it was expecting Germany to
continue to outperform other European economies, it thought that the eurozone’s
recovery would “grind to a halt” next year.
France’s finance minister Christine
Lagarde said that the recovery there was looking “solid” and pointed out that
household spending in particular had picked up.
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