- European Commission
Slowdown in emerging markets, the Volkswagen scandal, as well as a migration crisis derailed the Euro zone's number one economy during the third quarter. After a promising and strong performance in the three months through June, the German economy weakened, with the nation's GDP increasing 0.3% during the third quarter, according to Destatis. Domestic consumption was the main driver of third quarter GDP growth. In annual and non-seasonal adjusted terms, the economy expanded 1.8%, in line with economists expectations. The European Commission predicts real GDP in Germany to increase by 1.7% in 2015 and 1.9% in 2016 and 2017.
Meanwhile, the French economy, the Euro zone's second biggest, performed better in the third quarter, according to preliminary data. France's economic output rose 0.3%, following a 0.0% growth in the second quarter. The household consumption was also the main driver behind the growth, as it increased 0.3% after stagnating in the preceding three-month period. In Italy, GDP continued to increase at a 0.2% quarterly pace, signalling that the process of implementing economic reforms should continue. On an annual basis, the Euro zone's third biggest economy grew 0.9% in the reported period, compared with the revised 0.6% growth in the previous quarter.
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