Exports Haul Germany Out of Recession

Germany emerged from recession in the third quarter, due to a stronger than expected increase in exports, which outweighed a drop in consumer spending. Gross domestic product grew 0.2 percent from the second quarter, but fell 0.2 percent from the year earlier quarter, the Federal Statistics Office said on Thursday. Exports increased 3.2 percent, almost double the median forecast of 1.8 percent in a survey conducted by Bloomberg News. Private consumption fell 0.6 percent. Accelerating growth in the U.S. and Asia is spurring demand for exports, even as the euro's rapid rise pushes up prices of German goods overseas. Germany's economy is likely to stagnate for all of 2003.