Bundesbank Expects Germany’s GDP To Grow In Q2

The German Central Bank expects the nation’s economy to expand in the second quarter of 2024 after contracting at the end of 2023.

The country’s GDP grew by 0.2% between January and March 2024 compared to the same period the previous year, according to preliminary figures from the statutory office Destatis. The October–December 2023 period had a 0.5% decline in the economy.

According to the Bundesbank’s projection, « the economy is likely to expand slightly again in the second quarter. »

Growing household incomes and consumer spending were probably major factors in the services sector’s ongoing expansion.

The Central Bank researchers predicted that « growth in household disposable income is likely to take the upper hand from consumer uncertainty. » They did point out that the building industry is still in poor shape.

It is anticipated that the German labor market will continue to be robust and that salaries would rise at a high pace. This might put inflation at danger, which the Bundesbank predicts will pick up some speed in May.

source: dw.de

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