French and German economies contract in final quarter

City A.M. Reporter
The French and German economies both shrank in the final quarter of 2012, preliminary data showed this morning.

The German economy contracted more than at any time since the height of the financial crisis, shrinking 0.6 per cent on a seasonally-adjusted basis and worse than forecast.

The Statistics Office said weaker foreign trade – exports fell more than imports of goods – was to blame for the decline in the final quarter.

The French economy, the second-largest in the Eurozone, shrank by 0.3 per cent in the final quarter.