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Carsten Brzeski, chief economist at ING, points out that the German economy grew by 0.4% quarter-on-quarter, 0.6% year-on-year, leaving the brink of recession behind.

Key Quotes

“The details show that growth in the first quarter was driven by private consumption, investment and even net exports. Interestingly, private consumption has been growing in 32 out of 37 quarters, with an average of 0.3% QoQ. At the same time, government consumption and inventories were a drag on growth.”

“The German economy has once again demonstrated that it should never be written off. With the ongoing need for more investments and structural reforms, some might even argue that the economy somehow resembles the return of the living dead. As much as today’s data are balm for the soul, there is no reason for complacency.”

“All in all, the first quarter for the German economy was much better than many had expected. A moment for celebration but not for complacency.”