Growing Russian Headwinds... Germany's Q1 Economic Growth Rate Stalls at 0.2%

Brandenburg Gate, Berlin, Germany
[Photo by Yonhap News]

[Asia Economy Reporter Lee Chun-hee] Germany's first-quarter economic growth rate has virtually stagnated due to the aftermath of Russia's invasion of Ukraine.

On the 29th (local time), the German Federal Statistical Office announced that Germany's first-quarter gross domestic product (GDP) grew by only 0.2% compared to the previous quarter. Previously, economic experts had forecasted a growth rate of 0.1%.

Economic experts expect the German economy to grow this year, but uncertainties are increasing due to Russia's invasion of Ukraine and the resulting Western sanctions against Russia. In particular, energy and raw material prices have surged, causing inflation to soar and increasing the burden on businesses and consumers.

The German government has significantly lowered its economic growth forecast for this year to 2.2%. This is a 1.4 percentage point drop from the previous forecast of 3.6% made in January.

Robert Habeck, Minister for Economic Affairs and Climate Protection, stated that if gas supplies from Russia are suddenly cut off, it is inevitable that the German economy will fall into a recession.

This content was produced with the assistance of AI translation services.