Germany’s economy grew by 0.3% in the first quarter

Germany’s economy grew 0.3% quarter-on-quarter in the first quarter of this year, according to preliminary data released by the Federal Statistical Office of Germany on April 30. Adjusted for price, seasonal, and working-day factors, Germany’s GDP grew 0.3% quarter-on-quarter in the first quarter of this year. In the fourth quarter of last year, the German economy grew 0.2% quarter-on-quarter.

The Federal Statistical Office stated in its announcement that private and government consumption expenditure was the main driver of economic growth in the first quarter. Exports also increased.

The Kiel Institute for the World Economy issued a statement that day, saying that the sharp rise in energy and raw material prices triggered by the Middle East conflict has begun to put pressure on the economy. If the conflict continues, it will not only continue to weaken business and consumer confidence but also disrupt international supply chains, potentially leading to a decline in economic output in the second quarter.

The German Federal Government recently pointed out in its spring economic forecast report that the prospects for Germany’s economic recovery are fragile due to the impact of the Middle East conflict. The report predicts that the German economy will grow by only 0.5% in 2026, significantly lower than the 1% forecast in January of this year; at the same time, persistent trade protectionist measures will also drag down exports, putting further pressure on the economy.