Economic growth in the UK slowed in the third quarter as the economy grew by 0.7%, lower than the 0.9% recorded in the second quarter.
This is in line with expectations after recent rapid growth. On an annualised basis, the economy grew by 3% in the third quarter, lower than the 3.2% in the previous quarter. Despite the slowdown, the UK economy is 3.4% higher than its pre-recession peak in the first quarter of 2008 and looks set to be the fastest-growing advanced economy this year.
The Eurozone experienced sluggish growth in the third quarter, with the economy expanding only 0.2%. This was better, however, than both the growth recorded in the second quarter and that expected in the third quarter. France recorded stronger-than-forecast economic growth, and Greece emerged from its six-year recession. Italy fell back into recession again during the third quarter, and Germany narrowly avoided entering recession. The German economy expanded 0.1% in the third quarter. Economists are predicting a similar paced growth for the fourth quarter, although they believe that weak investment will ease in 2015 and that German growth will revert to a more robust pace.
Over the third quarter, the US economy expanded at an annual rate of 3.5%, slower than the 4.6% growth in the second quarter. This is better than the 3.1% which had been forecast due to positive contributions from consumer spending, exports, fixed investment, and government spending at all levels. The economy was mainly boosted by an increase in national defence expenditures and a shrinking trade deficit.
China’s economy grew at its slowest pace since the first quarter of 2009 when it recorded annualised growth of just 6.6%. There is a risk that the world’s second-largest economy will miss its official annual growth target (7.5% for 2014) for the first time in 15 years.
This report contains quarterly statistics data for markets around the world.