Despite declining inflation, household consumption and government expenditure both fell by 0.4% in the first quarter of 2024 compared to the previous quarter. This marked a positive start to the year after a decline at the end of 2023, said Ruth Brand, president of the statistics office. The German economy grew by 0.2% in the first three months of 2024, confirming preliminary data and indicating that the country was on track for a recovery.
Investments in construction saw a significant increase of 2.7% in the first quarter, while investment in machinery and equipment fell by 0.2%. These positive contributions came from foreign trade as well, with exports of goods and services rising by 1.1% compared to the previous quarter. Overall, these factors contributed to the growth of the German economy during this period.
While household consumption and government expenditure experienced declines, investments in construction drove growth and played a key role in contributing to the overall positive signs of economic recovery in Germany during the first quarter of 2024.