Germany’s economy has returned to growth in the first quarter of 2024, data by the Federal Statistical Office showed.
The country’s GDP rose 0.2% quarter-on-quarter in Q1, which matched both a preliminary estimate and market consensus.
Growth was mostly attributed to a rebound in gross fixed capital formation (1.2% QoQ after a 2.1% drop in Q4 of 2023).
Another positive contribution to the GDP came from net external demand. Total exports grew 1.1% quarter-on-quarter, while total imports increased at a slower rate, 0.6%.
Conversely, private consumption and government spending shrank at quarterly rates of 0.4%.
In annual terms, however, the German economy contracted 0.2% in Q1, or at the same rate as in the preceding quarter, while entering a technical recession for the first time in more than three years.
The EUR/GBP currency pair settled 0.02% lower at 0.8515 on Friday. For the week, the minor currency pair retreated 0.40%, as it extended the loss from the prior week.
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