Berlin, April 14 /BNA/: Germany is expected to narrowly escape recession and record modest growth in the first quarter of the year, according to a report issued by the Ministry of Economy published Friday.
“It appears that a technical recession has been avoided for two consecutive negative quarters,” the ministry said.
She added that current projections expect a slight year-on-year increase in gross domestic product for 2023 as a whole. Leading economic institutes expect the German economy to grow by 0.3% this year.
The report indicated that economic indicators indicate a remarkable recovery in the first quarter, with industrial and construction output driving growth, benefiting from easing material bottlenecks, lower energy prices, and favorable weather conditions.
The institute’s joint economic forecast predicts a 0.1% expansion of gross domestic product in the first quarter. This follows a 0.4% contraction in the fourth quarter of 2022, according to Reuters.
The ministry spoke of a “favorable start” to the year. The ministry said that the mild winter and high levels of gas storage contributed to the availability of sufficient quantities of gas in Germany and Europe, which was reflected in a noticeable decrease in energy prices.
Inflation rates are expected to continue declining in the coming months, although they will remain at a high level. The current forecast range is 5.4% to 6.6% for inflation in 2023 and 2.1% to 3.5% for 2024.