Europe's biggest economy narrowly avoids recession

Germany narrowly avoided slipping into a recession in the third quarter, providing some relief to its economic prospects. Gross domestic product increased by 0.2% from July to September, driven by higher government and household spending. This follows a previous quarter's contraction of 0.3%. Revised figures showed a slight dip in GDP for the second quarter. The economy had shrunk last year, and forecasts remain grim with zero growth expected, marking the weakest outlook among major economies.

A significant decline in Volkswagen's profits has amplified concerns over economic growth. The automaker faces potential factory closures in Germany and job cuts, a first in its long history. Volkswagen reported a 21% drop in operating profit for the first nine months, reaching €12.9 billion, impacted by underperformance at its main brand and restructuring expenses. Updates on this situation are ongoing.