ECONOMY

Germany avoids recession as it reports slight economic growth in Q3

A power plant steams behind steel works of German steelmaker Thyssenkrupp in Duisburg, Germany. (AP)

Germany narrowly avoided a recession on Thursday as official figures report the country’s economy grew by 0.1 percent in the third quarter of 2019.

A country enters a technical recession when it reports two consecutive quarters of negative economic growth.

Germany’s Federal Statistics Office said that the positive contributions to Q3 2019 mainly came from consumption. Compared with Q2 2019, household consumption increased, while government investments in infrastructure also supported growth.

Unemployment decreased 0.8 percent year-on-year.

The Statistics Office also reported that the economy contracted 0.2 percent in Q2 2019, greater than the 0.1 percent previously indicated.

Following the news, Economy Minister Peter Altmaier said that the expansion did not sound the all clear for Germany, which had been expected to slip into a recession, Reuters reported.

The minister referred to the US-China trade war and Brexit as the “dark clouds on the horizon” of the global economy, adding that they had lifted somewhat.

“We are cautiously optimistic. We will have bigger growth next year,” German Finance Minister Olaf Scholz told a conference in Berlin, news agencies reported.

Scholz added that Europe’s largest economy is currently experiencing slower growth, but is not in an economic crisis.

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Last Update: Thursday, 14 November 2019 KSA 16:13 - GMT 13:13
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