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German Economy Returns to Growth

News, 24 May 2002

The German economy, Europe’s largest, officially moved out of recession in the first quarter of this year.

According to the Federal Statistics Office, the economy expanded 0.2% in the period, following a 0.3% decline in the final three months of 2001 and a 0.2% drop in last year’s third quarter.

The figures are expected to herald further expansion. “The basis for a tension-free economic growth this year is favourable,” the FSO declared.

One man praying particularly hard for an upturn is German chancellor Gerhard Schröder, who stands for re-election in November. He hailed the news as a sign that unemployment would fall.

However, the report also revealed that manufacturing investment and consumer spend “clearly declined” during the period, while GDP fell 1.2% from its level twelve months before.

Data sourced from: BBC Online Business News (UK); additional content by WARC staff