The German economy grew by 0.7% during the third quarter, the country’s statistics office said on 13 November, with a pickup in exports and corporate investment driving the expansion rate in Europe’s biggest economy. But - underscoring the depth of the downturn that engulfed the nation over the last 12 months - the nation’s economy shrank by a sharp 4.7% year-on-year in the third quarter. Releasing the data, however, the statistics office also revised up the second-quarter figures saying that the country’s economy expanded by 0.4% in the three months to the end of June. Germany emerged more swiftly than expected from its deepest recession in a generation to report an initially estimated 0.3% expansion rate during the second quarter. The slight upward trend of the economy observed in the second quarter seems set to continue, the statistics office said releasing the data. The third-quarter growth rate was roughly in line with analysts’ projections. However, the statistics office said private consumption acted as a drag on growth in the latest quarter. Looking ahead, the current momentum is likely stay for some time, ING Bank economist Carsten Brzeski said. The inventory cycle has just started to turn and positive news will continue. Moreover, filling order books and accelerating global demand point to a further pick-up in economic activity, he said. The healthy third-quarter growth rate is likely to mean Germany will have also helped Europe to climb out of recession during the three months to the end of the September.