Final data published by the Federal Statistical Office (Destatis) showed that the German economy grew by 0.2% in the 1st quarter after shrinking by 0.3% in the 4th quarter. Economists also expected an expansion of 0.2%. Meanwhile, compared to the last quarter of 2019 (before the outbreak of the pandemic), German GDP decreased by 0.9%. In annual terms, GDP grew by 3.8% compared to 1.8% in the 4th quarter. Consensus estimates suggested an increase of 3.7%.
Destatis reported that in the first three months of 2022, household spending on final consumption decreased by 0.1% compared to the 4th quarter of 2021, while government spending on final consumption increased by 0.1%. Meanwhile, gross fixed capital formation in the construction sector increased by 4.6% in quarterly terms, and gross fixed capital formation in machinery and equipment increased by 2.5%.
The data also showed that total exports fell by 2.1% in quarterly terms, which was due to ongoing problems in international supply chains. As for the total volume of imports, it increased by 0.9%, which was facilitated by a significant increase in imports of services.