The German economy did not contract in the first quarter of this year, thus averting an anticipated recession – two consecutive quarters of economic contraction. One of the reasons cited is a rise in exports, according to the Bundesbank.
After experiencing an economic contraction of 0.3 percent in the final quarter of 2023, further contraction was predicted for the first months of this year. However, according to the German central bank, the Bundesbank, there was “mild growth” in the first quarter, without disclosing specific figures.
As a result, Germany is expected to dodge the anticipated “winter recession,” as stated by the Bundesbank. Strong performances in the manufacturing industry, along with increases in both exports and construction production at the beginning of the year, are helping propel the German economy forward.
“The economic situation in Germany has slightly improved, but remains fundamentally weak,” the Bundesbank wrote in its monthly report on Thursday. “Therefore, it is not yet certain whether the increase in economic production will continue into the second quarter.”