Indicators

Germany’s Economy Shows Signs of Life But Industry Is Struggling

  • Consumers are driving pick-up, with service sectors blossoming
  • Analysts see 0.1% growth in first quarter, dodging recession
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Germany’s economic prospects are looking up after two grueling years of near-zero growth. The consumer-led revival, though, papers over enduring industrial weakness for which there’s no quick fix.

Data this week signaled the fledgling recovery in Europe’s largest economy is gaining momentum — especially in service sectors like tourism and hospitality. The mood among businesses is perking up as confidence builds that a widely anticipated winter recession has, in fact, been avoided.