German economy stagnated in 1Q
4Q GDP revised to 0.5 contraction vs. 0.4 previously
Economists warn Germany isn39;t out of the woods yet

BERLIN, April 28 Reuters The German economy stagnated in the first quarter, as a decline in government and household consumption was balanced out by an increase in exports and capital investment, data showed on Friday.

Gross domestic product was unchanged quarter on quarter in adjusted terms, the federal statistics office said. A Reuters poll of analysts had forecast growth of 0.2.

Detailed results for the first quarter will be released by the statistics office on May 25.

The German economy remained stuck in the mud at the start of 2023, only barely avoiding recession, Pantheon Macroeconomics39; chief eurozone economist Claus Vistesen said.

The German economy shrank by a revised 0.5 in the fourth quarter of 2022 compared with the previous three months, reviving fears of a technical recession, defined as two consecutive quarters of contraction.

With the outturn for the fourth quarter also revised down, that left the economy broadly in line with its prepandemic level, while GDP is significantly above that mark in Italy and France, Capital Economics39; senior Europe economist Franziska Palmas said.

The German government raised its economic growth forecast for this year to 0.4 from a previously predicted 0.2, according to its spring economic projections published on Wednesday.

A gradual recovery is underway, despite a…