Strong exports, government spending and household consumption helped the German economy dodge a recession in the third quarter, indicated details of the report released on Friday. GDP growth amounted to 0.1% and were in line with consensus.

Exports rose 1% in the third quarter. Since German exports exceed imports net trade was positive and contributed 0.5 percentage points to the total economic growth. The largest economy in the EU is currently getting through a downturn as export-focused firms struggle to sell their goods abroad. Germany auto industry is probably the biggest victim of the trade frictions where slump is also amplified with structural decline of demand for cars.

The coalition government of conservative Chancellor Angela Merkel rejected calls from industry groups and economists to create a stimulus package to bring the economy back on a growth trajectory.

The data showed that personal consumption grew by 0.4%, and government spending - by 0.8%, which contributed to quarterly GDP increase of 0.2 percentage points.

As part of the spending program agreed upon by Merkel Conservative party with their coalition partners, the Social Democrats, the government increased benefits for families, students and retirees. This came in addition to lower taxes and higher infrastructure costs.

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