The German economy contracted slightly more than initially estimated in the first quarter due to the coronavirus pandemic, revised data from Destatis revealed on Tuesday.
Gross domestic product fell 1.8 percent sequentially in the first quarter, in contrast to the 0.5 percent expansion seen in the fourth quarter. The sequential fall was revised from -1.7 percent. On an unadjusted basis, the annual decline in GDP deepened to 3.4 percent from 2.3 percent in the fourth quarter. The rate was revised from 3.3 percent.
The calendar-adjusted GDP was down 3.1 percent on year, following a 3.3 percent decline a quarter ago. According to flash estimate, GDP was down 3 percent.
Compared to the fourth quarter of 2019, the quarter before the start of the Corona crisis, economic output was 5.0 percent lower, Destatis reported.
In the first quarter, private consumption declined 5.4 percent from the previous quarter. In contrast, government consumer spending rose slightly by 0.2 percent.
The positive impetus came primarily from construction investments, which rose by 1.1 percent. A little less was invested in equipment – mainly machines, devices and vehicles, down 0.2 percent.
Imports of goods and services rose 3.8 percent in the first quarter but significantly more than exports, which gained only 1.8 percent.