By Maria Martinez
The German economy posted an expansion in the first quarter despite Russia’s invasion of Ukraine which weighed on manufacturing activity and private consumption in March, as energy prices surged and supply chain disruptions have deteriorated.
Germany’s gross domestic product rose 0.2% adjusted from the previous quarter, according to an initial estimate released Friday by the country’s statistics office. Economists polled by The Wall Street Journal had forecast an expansion of 0.1%.
The increase is mainly due to higher capital formation, while the balance of exports and imports had a downward effect on economic growth, Destatis said. The economic consequences of the war in Ukraine have had a growing negative impact on economic activity since late February, the statistics agency added.
GDP rose 3.7% year-on-year in the first quarter on a calendar and price-adjusted basis, more than the 3.6% forecast by economists polled by the Journal.
The data follows the publication of the first estimates of first-quarter GDP in France and Spain. GDP stagnated in France and increased by 0.3% quarter on quarter in Spain.
The German statistics office will publish the final first quarter GDP results on 25 May.
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