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German growth rate slumps in Q3

Germany - Export weakness hits
Germany - Export weakness hits

The German economy lost steam in the third quarter as gross domestic product grew by just 0.1%, following increases of 0.4% in the two previous quarters.

The federal statistics office Destatis said a slump in exports, the main force behind the euro zone's biggest
economy, was responsible for the weaker result. Analysts had been expected 0.3% growth.

Germany's central bank had already warned the economy could slow down owing to higher oil prices. For the full-year 2004, the German government is counting on GDP growth of around 1.8%.