BERLIN, April 30 Reuters The German economy skirted a recession at the start of the year, growing more than expected thanks to the construction sector and exports, preliminary data showed on Tuesday.

The economy grew slightly in the first quarter, with gross domestic product rising 0.2 on the previous threemonth period in adjusted terms.

Analysts polled by Reuters had forecast a 0.1 increase.

The higher than expected figure does not change the view of shared by economists that structural weaknesses will limit Germany39;s recovery.

Instead of an upturn, only narrowgauge growth is in sight, said Alexander Krueger, chief economist at Hauck Aufhaeuser Lampe Privatbank.

Tuesdays GDP data follows stronger sentiment indicators and a pickup in activity since the start of the year, noted Carsten Brzeski, global head of macro at ING.

Besides the potential cyclical headwinds, Germanys wellknown structural weaknesses will not disappear overnight and will limit the pace of any rebound this year, Brzeski said.

The statistics office revised the data for the last quarter of last year to show a 0.5 contraction, rather than the fall of 0.3 that was previously reported.

The German economy, Europe39;s biggest, was the weakest among its large euro zone peers last year, as high energy costs, feeble global orders and record high interest rates took their toll.

Although inflation is expected to ease this year, growth is forecast to remain relatively weak. Last week the German…

Leave A Comment