Germany’s economy grew slightly in the first quarter thanks to increased activity in the construction sector and a rise in exports, government data showed on Friday, matching a preliminary estimate of 0.2% quarter-on-quarter growth released last month released.
“After GDP fell at the end of 2023, the German economy started 2024 on a positive note,” Ruth Brand, president of the Federal Statistical Office, said in a statement.
Hopes for Europe’s largest economy in the coming months rest mainly on a recovery in private consumption in the light of higher wages and lower inflation.
The country’s central bank said this week that it expected growth to pick up modestly again in the second quarter. But the consensus among analysts and investors is that the economy still faces major challenges and will not see a quick recovery this year.
In 2023 as a whole, Germany entered a mild recession with a price-adjusted decline of 0.2%. The export-oriented economy felt the consequences of the slowdown in the global economy, but also of temporarily high energy prices and the rapid increase in interest rates.
Data released on Friday showed Germany’s construction sector ended the first quarter with an increase in orders thanks to particularly strong data in March.
In the first three months, the sector recorded 1.6% more orders than in the same period last year, adjusted for price, according to the Federal Statistical Office.
The figure includes orders for the construction sector as well as civil engineering projects such as roads, railways and pipelines.
