The German 1Q contraction was slightly larger than initially estimated
By Maria Martinez
The German economy contracted in the first quarter more than what the first statement indicated, German statistics bureau Destatis said on Tuesday.
Gross domestic product fell 1.8% adjusted from the previous quarter, according to Destatis in its second estimate for the quarter. This drop was larger than economists’ expectations of a 1.7% contraction in the Wall Street Journal survey.
GDP fell 3.1% year on year in the first quarter on a calendar and price-adjusted basis, Destatis said. This compares to a contraction of 3.0% in the preliminary estimate. Economists polled by the Wall Street Journal had forecast a contraction of 3.0%.
After the German economy recovered somewhat in the second half of 2020, posting growth of 8.7% in the third quarter and 0.5% in the fourth quarter, the coronavirus crisis caused a further decline in economic performance in the early 2021, Destatis said.
“The persistent, and partly intensified, restrictions imposed to contain the coronavirus pandemic had a particularly marked impact on household final consumption expenditure at the start of the year,” the German bureau of statistics said.
In the first quarter, household consumption fell by 5.4% over the quarter after adjusting for price variations, seasonal and calendar. General government final consumption expenditure was slightly higher than in the previous quarter, increasing by 0.2%.
Foreign trade increased at the start of the year. However, the 3.8% increase in imports of goods and services in the first quarter was significantly larger than the 1.8% increase in exports.
Write to Maria Martinez at [email protected]