German economy dodges downturn while other EU nations show growth signs
Latest data shows German economy avoided technical recession with tiny growth‚ while France and Spain performed better. ECB rate adjustments and tourism helped push eurozone to its best quarter in years
Germanys largest economy side-stepped a down-turn with a modest 0.2% rise (during Jul-Sep 24)‚ recovering from its previous three-month drop of 0.3%. This news brings relief to Olaf Scholz government‚ though the countrys growth stays flat-lined
The nations old success formula – cheap power and big export markets – doesnt work anymore; China has taken over as the worlds factory. Carsten Brzeski from ING points out: many companies face troubles‚ with Volkswagen planning to shut-down three local plants (first-ever closures in Germany) and cut lots of jobs
The wider euro-area showed better results growing 0.4% in third-quarter: France doubled its pace to 0.4% thanks to Olympic boost; Spain jumped 0.8% due to tourist-flows. ECBʼs decision to lower rates from 4% to 3.25% helped push activity up
Kamil Kovar at Moodys thinks the next rate-cut will be small: “todays numbers plus inflation bounce means no big december cut.“ Looking ahead tourist-driven growth might slow down and government spending will drop but 2025 looks better – with more money in peoples pockets lower rates and better world trade
