The German Government Statistical Office (FSO) released preliminary estimates today (April 30) indicating a modest expansion in Germany’s gross domestic product (GDP) for the first quarter of 2024 (January-March). According to the data, the German economy grew by 0.2% when compared on a quarterly basis, marking a reversal from the 0.5% contraction observed in the previous quarter of 2023 (October-December).
These initial estimates surpassed analysts’ expectations, which had anticipated a growth rate of 0.1% for the quarter.
When analyzed on a year-on-year adjusted basis, factoring in both price and calendar terms, Germany’s GDP contracted by 0.2% in the first quarter of 2024. This figure aligns closely with market forecasts.
The report from the FSO provides a glimmer of hope for Germany’s economic trajectory, indicating resilience and potential for recovery following a period of stagnation. However, analysts remain cautious amid ongoing uncertainties in the global economic landscape, including geopolitical tensions and supply chain disruptions.
As policymakers and economists continue to monitor the evolving economic situation, the preliminary GDP figures for Q1 2024 offer insights into the current state of Germany’s economy and its prospects for the months ahead.