BERLIN (Reuters) – The German economy grew by 0.2% in the first three months of 2024, the statistics office reported on Friday, confirming preliminary data.
“After GDP declined at the end of 2023, the German economy started 2024 with positive growth,” said Ruth Brand, president of the statistics office.
Despite declining inflation, household consumption did not recover in the first quarter, falling 0.4% on the previous quarter. Government expenditure was also 0.4% lower than in the previous quarter, the data showed.
Investment in construction rose by 2.7% following a weak second half of 2023. Meanwhile, investment in machinery and equipment declined by 0.2%.
Positive contributions also came from foreign trade. In the first quarter, exports of goods and services were up 1.1% compared with the previous quarter.
Looking ahead, the outlook for the German economy Q1 remains cautiously optimistic. Transitioning to economic forecasts, experts anticipate continued but moderate growth in the coming quarters. Government policies aimed at supporting businesses and households are expected to sustain economic momentum.
However, Germany’s strong industrial base and skilled workforce position it well for recovery. Transitioning to concluding thoughts, while the Q1 growth is encouraging, sustained efforts are needed to address structural issues and promote inclusive growth in the German economy.
read more
image source
