Two of the continent’s largest economies, Germany and France, released data on the 14th of November, which showed that their economy recoveries are faltering. Germany’s GDP rose only 0.3% in the third quarter, in line with estimates, down from 0.7% in the previous quarter.
France was a bigger disappointment. Its economy contracted by 0.1% in the third quarter. The data comes as a blow to president François Hollande, who faces extremely low popularity ratings and a tax revolt. Last week, France was downgraded by S&P, the American debt ratings agency, which cast doubt on the country’s growth prospects.
The wider Euro zone figures confirmed that the slowdown is well in place. The 17-country region expanded by a mere 0.1% in the third quarter, well down from the 0.3% recorded in the previous quarter.
While the slowdown was expected, it comes as a blow to the economies which had hoped a growth revival would create jobs. The Euro zone’s unemployment rate is a record 12.2%. The youth unemployment rate in some countries, including Spain Italy and Greece, is two to four times higher.
Italian figures revealed that the Euro zone’s third-largest economy remains in recession, with a 0.1% GDP contraction in the third quarter, and a 1.9% fall year on year.
