Published: 15:34, May 25, 2022 | Updated: 15:51, May 25, 2022
Germany dodges recession in Q1 despite Ukraine crisis, pandemic
By Reuters

Pedestrians walk past barriers as construction for high-rise buildings is underway at and around Berlin's central Alexanderplatz on Oct 19, 2021. (INA FASSBENDER / AFP)

BERLIN - The German economy grew in the first quarter, in line with expectations, despite difficult economic conditions caused by the conflict in Ukraine and the pandemic, data showed on Wednesday.

The first-quarter growth meant Germany avoided a recession, defined as two quarters in a row of contraction, after gross domestic product fell by 0.3 percent at the end of 2021

Europe's largest economy grew by 0.2 percent quarter-on-quarter and by 3.8 percent on the year, adjusted for price and calendar effects, the Federal Statistics Office said. A Reuters poll had forecast growth of 0.2 percent and 3.7 percent, respectively.

The first-quarter growth meant Germany avoided a recession, defined as two quarters in a row of contraction, after gross domestic product fell by 0.3 percent at the end of 2021.

"Despite the difficult global economic conditions, the German economy started the year 2022 with slight growth," said Georg Thiel, president of the statistics office.

While household and government spending remained mostly at the same level as in the previous quarter and exports were down at the start of the year, investments helped boost the economy.

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Construction investments, boosted by mild weather, were up 4.6 percent from the previous quarter, despite price increases, and machinery and equipment investments also saw a rise, of 2.5 percent.

The German government in its spring forecast said that it expects overall economic growth in 2022 of 2.2 percent.