Germany’s economy barely grew in the first quarter of 2013 as exports and investment shrank, figures show.
But higher domestic consumption – thanks to rising wages – helped offset the declines in foreign trade and capital investment, raising hopes it will help drive a sustained recovery.
Gross domestic product rose 0.1% from the previous quarter, but contracted 1.4% compared with a year earlier.
The figure showed the economy narrowly avoided falling into a recession.
In the previous quarter, Germany’s annual economic output shrank by 0.7%. A recession is defined as two consecutive quarters of economic contraction.
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