In the first quarter of 2024, the German economy experienced a positive growth rate of 0.2%, according to statistics from the office of Ruth Brand. This growth came after a decline in GDP at the end of 2023. Despite declining inflation, household consumption remained stagnant and fell by 0.4% compared to the previous quarter, while government expenditure decreased by the same amount.
Despite these challenges, there were some bright spots for the German economy in the first quarter. Construction investment saw a significant increase of 2.7%, while investment in machinery and equipment decreased slightly by 0.2%. Additionally, exports of goods and services rose by 1.1% compared to the previous quarter, contributing positively to overall growth.
Ruth Brand, president of the statistics office, highlighted the importance of this positive growth in setting a positive trajectory for the rest of the year. While there are still areas that need improvement, such as declining consumer spending and government expenditure, overall economic performance remains strong thanks to increased construction investment and export trade.
