Data released Wednesday revealed that the German economy expanded by 0.2% in the first quarter, matching forecasts. This growth, driven by consumption and investment, allowed Germany to avoid a recession after a contraction in the previous quarter.
The statistics office released preliminary data. Germany’s economy had shrunk by 0.2% in the last quarter of the previous year, sparking concerns about a recession. A recession is defined as “two consecutive quarters of negative growth.”
Germany was the only G7 nation without growth for the past two years. Tariffs announced by U.S. President Donald Trump “will deal a major blow – possibly putting it on track for a third year of recession for the first time in post-war German history.”
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