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Germany's growth downgraded in new blow for struggling economy

AFP
AFP - news@thelocal.de
Germany's growth downgraded in new blow for struggling economy
New cars of various brands are prepared for export on the parking lot of a car terminal at the harbour of Duisburg. Photo by Ina FASSBENDER / AFP

German growth in the third quarter was downgraded Friday, with data showing it registered even weaker expansion than previously thought, in a new blow for Europe's struggling top economy.

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The final reading confirmed the eurozone's traditional growth engine narrowly dodged a technical recession, with meagre growth of 0.1 percent quarter-on-quarter.

But that was down from a preliminary figure of 0.2 percent, representing more bad news as the economy struggles with headwinds from a slowdown in its crucial manufacturing sector to weak demand for its key exports.

The slight expansion "shouldn't be taken as a sign of a rebound, but rather as a confirmation that the German economy is stuck in stagnation," said ING economist Carsten Brzeski.

READ ALSO: Why is Germany's economy so sluggish and what does it mean for you?

"Even if the German economy avoided a summer recession, a winter recession is looming."

The economy was hit in the third quarter by a 1.9-percent fall in exports compared to the previous quarter, as well as weaker investments in areas such as machinery, equipment and construction, according to statistics agency Destatis.

Consumption, however, rose by 0.3 percent quarter-on-quarter, providing vital support, according to Destatis.

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