ISTANBUL
The German economy has contracted by 0.9% in the first quarter on a yearly basis, the federal statistical authority Destatis revealed on Friday.
“This is mainly due to the fact that Easter was early this year and some of the Easter public holidays fell in the 1st quarter, in contrast to the previous year,” Destatis said.
On a quarterly basis, the country’s economy expanded by 0.2% in the January-March period.
“After GDP declined at the end of 2023, the German economy started 2024 with positive growth,” said Ruth Brand, president of Detatis.
Although weaker inflation, household final consumption expenditure did not recover in the first quarter, Destatis said.
“It was down 0.4% on the previous quarter, after price, seasonal and calendar adjustment, as final consumption expenditure on food and clothing, for example, decreased. Government final consumption expenditure was also 0.4% lower than in the previous quarter,” it added.
Meanwhile, investment was up from the fourth quarter of 2023, it noted, adding that following a weak second half of 2023, gross fixed capital formation in construction rose significantly by 2.7% in the first quarter of 2024, after adjustment for price, seasonal and calendar variations.
