US EditionGerman Economy Stagnates, Dodging Recession: Data
The eurozone grew 0.2% in Q3 2025, led by France and Spain, despite no growth in Germany and Italy, with IMF raising yearly forecast to 1.2%.
- On Thursday, Eurostat said the eurozone grew 0.2% in Q3 2025, outpacing a 0.1% expectation while Germany and Italy recorded zero growth.
- Germany's stagnation reflects weakened export demand from slowing Chinese demand and US President Donald Trump's tariffs, while high energy prices and Chinese competition are partly offset by EU countries' military spending and delayed ECB rate cuts.
- France unexpectedly expanded 0.5% thanks to corporate investment and aeronautical exports, while Spain's 0.6% growth, aided by migrant labour and tourism, supported wider EU expansion.
- Ahead of Thursday's meeting, the ECB is expected to keep rates at 2%, marking a third pause, while the IMF raised this year's euro-area forecast to 1.2% but cut 2026 to 1.1%.
- Although Q3 matched forecasts, it remained below Q2's 0.8% expansion, and year-on-year output rose 1.3% across the 20-country Eurozone, leaving the bloc behind global peers.
31 Articles
31 Articles
Germany dodges a technical recession, but it cannot be satisfied with the stagnation of its economy, which also drags in the third quarter of 2025. After the...
Federal Minister for Economic Affairs Reiche spoke out in favour of targeted structural reforms. The renewed stagnation of gross domestic product in the third quarter shows that the structural weakness of the German economy continues, the CDU politician explained.
The German economy did not grow in the third quarter either. According to initial calculations, the gross domestic product remained unchanged. Germany is only marginally missing out on a technical recession.
While the gross domestic product stagnated in the third quarter, the number of unemployed fell slightly in October.
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