Eurozone economy cools to 0.3% growth in third quarter

13th November 2015, Comments 0 comments

Growth in the 19-nation eurozone slowed to 0.3 percent in the third quarter, official data showed on Friday, with the economy in powerhouse Germany cooling as France returned to expansion.

The Eurostat agency said the eurozone economy expanded more slowly than the 0.4 percent seen in the previous quarter and is in line to grow by 1.9 percent over the next 12 months.

The slight slowdown was brought on by a stalling Germany economy which also grew by a slower 0.3 percent, caught by falling demand from China and the Volkswagen pollution scandal.

Export-dependent Germany has seen weakened investment and a spike in uncertainty after a huge emissions scandal engulfed auto giant Volkswagen, Germany's landmark company.

As questions arose over the health of the German economy, neighbouring France posted a return to growth in the third quarter with an expansion of 0.3 percent after having earlier stalled.

Finance Minister Michel Sapin told AFP that the latest figures mean that France's economy will grow "by at least 1.1 percent" in 2015 as a whole, adding he believed the country had "exited the period of extremely weak growth that had lasted too long".

Bailed-out Greece meanwhile contracted sharply by 0.5 percent in the third quarter as capital controls this summer threw the economy into disarray.

Worryingly as well, the economy in recovery standout Portugal slowed to a standstill as domestic demand fell sharply.

© 2015 AFP

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