BERLIN – Germany is expected to narrowly escape recession and post modest growth in the first quarter of the year, according to an economy ministry report published on Friday.
“A technical recession of two negative quarters in a row appears to have been averted,” the ministry said.
Current forecasts also predict a slight year-on-year increase in gross domestic product (GDP) for 2023 as a whole, it added. For 2023 as a whole, leading economic institutes expect the German economy to grow 0.3 percent.
Economic indicators point to a noticeable pickup in value added in the first quarter, with industrial and construction output driving growth, benefiting from a further easing of material bottlenecks, significantly declining energy prices and favorable weather conditions, the report said.
“Consumer sentiment is expected to continue its recovery in the coming months, although inflation-related losses in purchasing power continue to weigh on the economy,” the report said.
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