In the first quarter of 2023, there was a noticeable upturn and industrial and construction output trended upwards. This is a good sign for economic development and could indicate that efforts to overcome the material bottlenecks are bearing fruit. The significant decline in energy prices and favourable weather conditions may also have contributed to the increase in value added. However, it remains to be seen how the economic situation will develop in the future, as the economy is always influenced by many factors.
The fact that current forecasts by the German Council of Economic Experts and economic research institutes predict a slight positive GDP increase for the year as a whole provides additional grounds for hope. However, it remains to be seen how economic conditions will develop in the coming months and years, as the economy is constantly influenced by various factors, such as global events, political developments and environmental conditions.
The inflation rate fell to +7.4% in March. This was mainly due to a base effect. Food is now the biggest price driver, not only because of its high weight in the basket of goods, but also because its rate of price increase is now higher than that of energy sources.
The labour market showed a robust sideways movement in March. However, the typical spring recovery was comparatively weak. Registered unemployment increased in March in seasonally adjusted terms, but there were
also sharp increases in employment. The demand for labour remains at a high level.
