Europe
19 days ago

German economy skirts recession

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The German economy skirted a recession at the start of the year, growing modestly but more than expected thanks to investment in construction and exports, preliminary data showed on Tuesday.

The economy grew slightly in the first quarter, with gross domestic product rising 0.2 per cent on the previous three-month period in adjusted terms.

Analysts polled by Reuters had forecast a 0.1 per cent increase, according to a Reuters report.

The statistics office also revised the data for the last quarter of last year to a 0.5 per cent contraction, from a more modest slump of 0.3 per cent that was previously reported.

Last week the German government raised its economic growth forecast for this year to 0.3 per cent, from 0.2 per cent previously, and lowered its forecast for inflation by 0.4 percentage points.

The German economy, Europe's biggest, was the weakest among its large euro zone peers last year, as high energy costs, feeble global orders and record high interest rates took their toll.

Although inflation is expected to ease this year, growth is forecast to remain relatively weak, with GDP only projected to grow by 1.0 per cent in 2025.

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