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Germany's economic landscape is seeing a nuanced recovery. The Federal Statistical Office (Destatis) has confirmed a 0.2% rise in the GDP for the first quarter, primarily driven by construction investments and foreign trade. This modest growth follows a 0.5% decline in the previous quarter, signaling a cautious optimism among economists. However, the persistent drop in productivity continues to cast a shadow over these gains. Year-over-year, the calendar-adjusted GDP fell by 0.2%, matching forecasts by Dow Jones Newswires. As Germany navigates these mixed signals, the focus remains on sustaining growth amid productivity challenges.
You mentioned high inflation yesterday. If they're understating inflation by just 0.2 percentage points, then real GDP actually declined.
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