German Economy Shows Surprise Strength Ahead of Expected Recession
Robust consumption helped Europe’s largest economy post modest third-quarter growth
FRANKFURT—Germany’s economy grew modestly in the three months through September, showing surprising strength ahead of what economists expect to be a bleak period as the region’s households and businesses wrestle with surging interest rates and prices fanned by Russia’s war in Ukraine.
The fate of Europe’s largest economy and its traditional growth engine is seen as crucial to the rest of the continent as Europe’s economic war with Russia intensifies. Germany is particularly vulnerable because of its past dependence on Russian fossil fuel and the importance of energy-hungry manufacturers for the country’s wealth and jobs.