BERLIN — In an unexpected turn, Germany’s economy, recognized as the largest in Europe, recorded a growth of 0.4% in the first quarter, propelled by robust export and manufacturing activities, according to official statistics revealed on Friday. This growth figure stands twice as high as initially projected.
Last month, the Federal Statistical Office had disclosed that the economy saw a marginal growth of 0.2% between January and March compared to the preceding quarter. Ruth Brandt, leading the office, attributed the revision to “the surprisingly strong economic development observed in March.”
The last period Germany experienced more accelerated growth was during the third quarter of 2022, when the gross domestic product increased by 0.6%. The nation has faced challenges in achieving considerable economic growth for several years, with contractions noted in both the last two years. Specifically, there was a 0.2% contraction in the fourth quarter of the previous year.
In a recent outlook, coinciding with new Chancellor Friedrich Merz’s recent government inauguration, the independent economic advisory panel suggested on Wednesday that the GDP may remain flat this year, with an anticipated growth of 1% next year.
The panel highlighted possible impediments due to President Donald Trump’s tariff policies and trade tensions. However, they also pointed out potential improvements owing to a significant infrastructure investment initiative launched by Merz’s coalition.
Carsten Brzeski, the global head of macroeconomics at ING bank, mentioned the unexpectedly strong first-quarter results could be deemed “a positive single occurrence” in the near term, energised by businesses aiming to counteract Trump’s tariff effects.
In a commentary piece, Brzeski noted, “Triggered by the announced tariffs and the approaching ‘Liberation Day,’ German industrial output and exports experienced a significant surge in March.”