Growing economy

The German economy had more good news this quarter as the third quarter Gross Domestic Product increased 0.7 percent over the previous quarter. The improved performance was the second consecutive quarter of positive growth for Europe's largest economy.

In the second quarter of 2009, Germany's GDP expanded by 0.4 percent.

Germany's economy, which depends heavily on exports, had been hit hard in the global downturn, and it was this vital sector where improvements were being seen.

Demand for exports rises

"Exports as well as capital formation in machinery and equipment and in construction had a positive impact on growth," according to a press release from Germany's federal statistics office.

"The German economy has emerged from the deep recession earlier and faster than many had thought," ING senior economist Carsten Brzeski told AFP.

However, the economic expansion still managed to fall slightly short of expected growth of 0.8 percent, according to Dow Jones Newswires, which polled.

A more detailed report on the third-quarter results is expected November 24.

sjt/AFP/AP
Editor: Nancy Isenson