What’s a rounding error between friends?
The German economy narrowly escaped logging two consecutive quarters of economic decline, the technical definition of a recession, when it unexpectedly posted GDP growth of 0.1% in the third quarter.
The tiny quarterly growth gives the country an annual growth rate of 0.5%. It’s not much, but it sounds so much better than “we went backward again this quarter.”
The small gain was driven by consumer spending as German businesses, led by car companies such as Daimler and Volkswagen, retrench in the face of fewer orders from overseas and the ongoing emissions scandal.
Germany derives 40% of GDP from exports, so when the rest of the world slows down it drags the German economy lower.