Recession averted
German economy grows in the first quarter
April 30, 2024, 10:03 a.m
The German economy grew in the first quarter. The gross domestic product increased by 0.2 percent from January to March compared to the previous quarter, according to the Federal Statistical Office.
The German economy has avoided a recession. The gross domestic product grew by 0.2 percent from January to March compared to the previous quarter, as the Federal Statistical Office announced. Economists had only expected mini-growth of 0.1 percent. In the fourth quarter of 2023, Europe’s largest economy shrank by a revised 0.5 (previously: -0.3) percent. Two negative quarters in a row are referred to as a technical recession.
According to statisticians, growth at the beginning of the year was driven by increases in construction investment and exports. “Private consumer spending, on the other hand, fell,” it said. The hope of an upswing in consumption in Germany has recently been given new fuel by surprisingly positive news from the retail sector: sales in March rose by 1.8 percent in real terms compared to the previous month, the fastest they have been in almost two and a half years. “There is growing hope that the approaching spring will further spur consumption,” said the chief economist at Hauck Aufhäuser Lamp Privatbank, Alexander Krüger.
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