Germany returns to growth in Q1, helped by construction, consumption

The German economy returned to growth inside first quarter, helped by higher household spending as well as a booming construction industry, preliminary data showed on Wednesday.

Gross domestic product (GDP) in Europe’s largest economy expanded by 0.4% quarter-on-quarter, the Federal Statistics Office said. This kind of was in line with analysts’ expectations.

A worker uses a remote control to move rotor assemblies for a turbine at the Siemens gas turbine factory on January 8, 2010 in Berlin, Germany.

Sean Gallup | Getty Images News | Getty Images

Compared with the same quarter of the previous year, the economy grew 0.7%, calendar-adjusted data showed. This kind of was also in line with the forecast. 

Economy Minister Peter Altmaier told Reuters in which the growth figures were a “first ray of wish” following two quarters without expansion, nevertheless This kind of was no reason to give the all-clear.

“The international trade disputes are still unresolved. We must do everything possible to find acceptable solutions in which enable free trade,” Altmaier said. 

Altmaier, a confidant of conservative Chancellor Angela Merkel, repeated a call to support companies by cutting red tape as well as taxes. Finance Minister Olaf Scholz, a Social Democrat, has declined to cut corporate taxes. 

The Statistic Office said growth was mainly driven by construction as well as increased household spending. 

the item confirmed in which the German economy contracted by 0.2% inside third quarter of last year as well as stagnated inside fourth.