Dax slides as German economic growth slows

<p>The German Dax has lost ground on news the economy shrank in the third quarter.</p>

The Dax index in Frankfurt has lost ground this morning (November 15th) on news Germany's economic growth has slowed.

According to federal statistics bureau Destatis, the nation's gross domestic product expanded by just 0.2 per cent in the third quarter of the year, as the ongoing eurozone debt crisis hampers its progress.

This is down from the second quarter's 0.3 per cent growth and the 0.5 per cent advancement recorded for the first three-month period of the year.

According to Destatis, expansion has been held back by sliding foreign demand.

Last month, the German government cut its forecast for economic growth next year from 1.6 per cent to one per cent, reflecting the fragility of the single currency bloc and the decreasing likelihood of a quick recovery.

At 09:50 GMT the Dax Index was lower by 0.5 per cent – or 37.2 points – to an index value of 7064.6 points.

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