Germany's economy expanded slightly in the first quarter thanks to increased construction sector activity and a rise in exports, government data showed on Friday, matching a preliminary estimate of 0.2% quarter-on-quarter growth released last month.
"After GDP fell at the end of 2023, the German economy started 2024 on a positive note," said Ruth Brand, president of the Federal Statistical Office, in a statement.
Hopes for Europe's biggest economy in the coming months are pinned chiefly on a pick-up in private consumption in light of higher wages and lower inflation.
The country's central bank said this week that it expected growth to once again increase modestly in the second quarter. But the consensus among analysts and investors is that the economy continues to face major challenges and will not see any rapid recovery this year.
In 2023 as a whole, Germany slipped into a slight recession with a price-adjusted decline of 0.2%. The export-orientated economy felt the effects of the slowdown in the global economy as well as the temporarily high energy prices and the rapid rise in interest rates.
