The German economy developed faster than we thought previously at the start of the year, official data showed on Friday, while his exports jumped before US President Donald Trump imposed radical rates.
The gross domestic product (GDP) in the higher economy in Europe increased from 0.4% from January to March compared to the previous quarter, according to final figures from the Federal Statistics Agency Destatis.
An initial estimate had expanded 0.2% and analysts did not expect any change.
Destatis said that the economy had “surprisingly worked well” in March on the back of increasing exports, which increased GDP figure.
There has been a significant growth in the expeditions of pharmaceutical products and motor vehicles, which are major exports to the United States, he said.
“The anticipated effects with regard to concerns concerning a trade warning war with the United States will therefore probably have contributed to positive development,” the agency said in a statement.
Trump imposed his radical “liberation day” prices in early April, although he has since interrupted the highest prices to allow talks.
The production jump is a boost for the traditional power of the euro zone after two years of recession, and is also good news for the new chancellor Friedrich Merz.
Analysts warned that the prices could strike the export power of Germany later in the year, most of them expecting that the economy stagnates in all 2025.
This story was initially presented on Fortune.com
