People gather at Christmas stalls on Friedrichstrasse street in Berlin, Germany, on Wednesday. (JOHN MACDOUGALL / AFP)

Germany's economy was given a boost with the latest results from the Federal Statistical Office showing continued recovery, although the nation is bracing for tighter lockdown restrictions after the Christmas period to contain the novel coronavirus.

Foreign trade increased by 0.8 percent in October, giving Europe's largest economy a slight lift as it battles to avoid a double dip recession amid moves toward new, more severe, coronavirus containment measures.

"Despite the October slowing, the export sector remains one of the few hopes of the German economy to avoid a significant contraction in the fourth quarter," ING economist Carsten Brzeski was quoted by Reuters news agency as saying.

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Despite the October slowing, the export sector remains one of the few hopes of the German economy to avoid a significant contraction in the fourth quarter.

Carsten Brzeski, ING economist

"The longer-term outlook, however, remains very mixed, illustrating that the sector will not easily return to its former strength," he added.

Data from earlier in the week showed the export-oriented manufacturing sector had helped the economy make a steady start to the fourth quarter, despite a partial lockdown in November.

The statistics office Destatis said on Wednesday that exports to China rose by 0.3 percent in October from a year earlier. Exports to the United States fell by 10.5 percent and those to Britain dropped 11.7 percent.

Reuters noted the German economy grew by 8.5 percent quarter-on-quarter in the July through September period. The economy had plunged 9.8 percent in the second quarter amid the first wave of the COVID-19 pandemic.

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Darkened expectations

The outlook for the economy is darkened by expectations of another lockdown after Christmas. Large parts of the services sector were already forced to close from Nov 2.

German Chancellor Angela Merkel has called for tougher measures following a record daily death toll. The Robert Koch Institute, Germany's public disease health authority, on Wednesday announced a record 590 fatalities, bringing the total since the start of the pandemic to 19,932 with more than 1.2 million infections.

Officials in several German states, including Bavaria, warned that continued high coronavirus infections could overwhelm hospitals and too many people were ignoring existing pandemic restrictions.

Speaking in the Bundestag on Wednesday, Merkel opposed opening hotels over the Christmas and New Year holidays and agreed with recommendations to close shops from Dec 24 until Jan 10. 

Contact the writer at jonathan@mail.chinadailyuk.com