The return to moderate economic growth predicted by analysts did not happen, but Germany still narrowly avoided a so-called technical recession. Such a state is usually defined as at least two consecutive quarters of economic decline. Moderate growth was announced, among other things, by the German central bank’s report on Monday. According to commentators, the mild winter also helped to prevent bad scenarios. A possible shortage of natural gas could cripple the industry, leaving profound consequences.
The Statistics Office said of the stagnation that private and state consumption decreased at the beginning of the year. “On the contrary, positive impulses came thanks to investments and exports,” the office said.
Habeck: The recovery continues
Federal Economy Minister Robert Habeck said on Wednesday, when presenting the spring economic development forecast, that the German economy has proven to be adaptable and resistant to the pressures placed on it in connection with the war in Ukraine and unfavorable demographic developments. “The gradual recovery we saw in the first quarter continues,” the minister said.
The government thus published a more optimistic economic forecast on Wednesday, according to which GDP will grow by 0.4 percent this year, not by 0.2 percent, as was assumed until then. On the other hand, the forecast reduced the estimate of economic growth for next year, to 1.6 from the previous 1.8 percent.
The German economy is the largest in Europe and a number of Czech companies depend on it, among other things. According to the Federal Statistical Office, the growth of the German economy slowed to 1.8 percent last year from 2.6 percent the year before.
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