In the first three months of 2024, the German economy grew by 0.2%, according to the statistics office. This growth confirmed preliminary data and marked a positive start to the year after a decline at the end of 2023, said Ruth Brand, president of the statistics office. Despite declining inflation, household consumption and government expenditure both fell by 0.4% in the first quarter compared to the previous quarter.
Investment in construction saw a significant increase of 2.7% in the first quarter, while investment in machinery and equipment fell by 0.2%. Positive contributions also came from foreign trade, with exports of goods and services rising by 1.1% compared to the previous quarter.
Overall, despite declines in household consumption and government spending, investments in construction drove growth while exports played a key role in contributing to the growth of the German economy during this period.
Ruth Brand, president of the statistics office highlighted that despite declining inflation, household consumption and government expenditure both fell by 0.4% in the first quarter compared to the previous quarter.
However, there were positive signs for growth as investment in construction increased by 2.7%, while investment in machinery and equipment fell slightly by 0.2%. Foreign trade also contributed positively with exports increasing by 1.1% compared to last year.
Despite some challenges such as declining inflation, households consumed less than expected which led to a decrease of consumer spending by 0.4% during Q1 when compared to Q4 last year.
Nevertheless, investments in construction drove growth while exports played an important role in contributing positively towards Germany’s economic development during this period.
