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German GDP Contracted in Q1

GERMAN DATA
MNI (London)

GERMANY FLASH Q1 GDP -1.7% Q/Q SA, -3.0% Y/Y WDA

GERMANY Q4 GDP +0.5% Q/Q, -3.3% Y/Y

  • The German economy contracted by 1.7% in Q1, coming slightly below expected (BBG: -1.5%).
  • The third wave weighed heavily on business activity as lockdown measures were renewed in the first quarter of 2021.
  • Q4 growth was revised up to 0.5% q/q from 0.3% reported previously.
  • The annual rate deteriorated/improved to 3.0% in Q1, after recording 3.3% in the previous quarter.
  • Compared to Q4 2019, the last quarter before the crisis, GDP is still 4.9% lower in Q1 2021.
  • Destatis noted that the decline was mainly driven by private consumption, while exports supported the economy.
  • Looking ahead, with vaccinations gaining momentum and surveys signalling strong business activity, the second quarter is likely to be characterized by a consumption driven rebound.
MNI London Bureau | +44 203-865-3814 | irene.prihoda@marketnews.com

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