Early in 2024, the construction and exports sectors in Germany help ward off a recession.
Germany dodged a recession during the start of the year, with the economy growing by 0.2% from January to March compared to the previous quarter. This, as per the Federal Statistical Office's data, aligns with the preliminary estimate given back in April.
This growth is the strongest in a year. Europe's biggest economy had experienced a contraction of 0.5% during the final quarter of 2023. With two consecutive quarters of contraction, experts call this a technical or temporary recession.
Exports played a big part in the growth, surging by 1.1%, while construction investment also saw an increase of 2.7%. However, private consumption slowed at the beginning of the year. Consumer spending dipped by 0.4% in comparison to the previous quarter.
In its spring forecast, the German government is expecting the nation's economy to rebound gradually throughout 2024. Finance Ministry experts commented that private consumption will be the driving force behind this growth. They predict the gross domestic product, or the total value of goods and services produced, will see a rise of 0.3% before increasing by 1.0% in 2025.
Read also:
- Year of climate records: extreme is the new normal
- Precautionary arrests show Islamist terror threat
- UN vote urges Israel to ceasefire
- SPD rules out budget resolution before the end of the year
The surge in exports and increased construction investment were key factors that helped Germany avoid a full-blown recession at the beginning of 2024, despite a contraction in the final quarter of 2023. This growth in exports and construction contributed positively to the country's GDP, which is expected to rebound gradually throughout 2024, according to the German government's spring forecast.
Source: www.ntv.de
