Germany’s economy is showing signs of growth in the first quarter, thanks to increased activity in the construction sector and a rise in exports. This growth aligns with a preliminary estimate released last month, with Ruth Brand, president of the Federal Statistical Office, stating that the German economy started 2024 on a positive note following a decline in GDP at the end of 2023.
While there are some positive indicators for future economic growth, challenges persist that must be addressed for sustained growth in the future. The country experienced a slight recession in 2023, with a price-adjusted decline of 0.2%, attributed to global economic slowdown, high energy prices, and rising interest rates. Despite this setback, Germany remains focused on potential increases in private consumption due to higher wages and lower inflation.
In addition to these challenges, ongoing economic difficulties are expected to continue throughout the second quarter. While Germany’s central bank expects modest growth to continue, analysts and investors anticipate ongoing economic challenges. These include rental apartments under construction in the Ehrenfeld district of Cologne, which may indicate a growing housing market but also raise concerns about affordability and availability for residents looking for a place to live.
