German economy grew by 0.2 percent in the first quarter – POLITICO

FRANKFURT – The German economy grew by 0.2 percent in the first quarter of this year, supported by higher investments, according to the Federal Statistical Office reported Friday.

This weak growth rate leaves German economic output 0.9 percent below the level before the pandemic. For the year as a whole, however, the economy was still up 4.0 percent.

According to the office, the prospects are not rosy. Since the end of February, “the economic effects of the war in Ukraine have had an increasing impact on economic development”.

The federal government earlier this week cut its 2022 growth forecast to 2.2 percent from 3.6 percent in January, citing uncertainty caused by the war as well as the conflict’s broader impact on inflation. For 2023, it forecasts growth of 2.5 percent.

Data from France this morning showed that the eurozone’s second-biggest economy came to an unexpected halt — below the 0.3 percent expansion expected ahead of the release.

Meanwhile, in Spain, slowed down to 0.3 percent, which also undercuts expectations of a 0.5 percent expansion.

Preliminary growth numbers for the euro zone will be released later today. Analysts in a Reuters poll were forecasting a quarterly increase of around 0.2 percent.