German economic growth slowed sharply in the third quarter as exports weakened, raising fears that euro zone GDP figures due tomorrow will be lower than expected.
Gross domestic product in Europe's largest economy rose just 0.1 per cent in adjusted terms through July-September, slowing from a downwardly revised 0.4 per cent in the second quarter, provisional Federal Statistics Office data showed today.
The dip in German growth came despite a pick-up in domestic demand, and undershot a forecast by a Reuters poll of economists for expansion of 0.3 per cent.
The rate of growth was the weakest since the economy shrank in the second quarter of 2003.
The Dutch economy expanded over the same period by 0.2 per cent , below a forecast for 0.3-0.4 per cent growth - but showing a recovery after a 0.1 per cent second quarter fall.
Economists said high oil prices had hurt Germany, which accounts for around one-third of euro zone GDP, and that growth in the 12-nation bloc would now likely be weaker than expected.