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Deutsche Bank analysts note that  the German economy avoided a technical recession in Q3, with an unexpectedly positive +0.1% GDP reading (vs. -0.1% contraction expected),  following the -0.2% contraction in Q2.

Key Quotes

“This echoes some other positive surprises from recent German manufacturing data recently, such as September’s better-than-expected factory orders out last week.”

“The fact that the economy didn’t fall into recession means that the pressure for German fiscal stimulus is likely to diminish further for now, and  finance minister Olaf Scholz said yesterday at a Bloomberg News event that there wasn’t a reason for doing fiscal stimulus because the German economy wasn’t in a crisis.”