German economy stutters as coronavirus curbs push up savings rate

Exports increased by 1.8 per cent on the quarter helped by strong demand from the US and China

The German economy shrank more than expected in the first quarter as coronavirus-related restrictions spurred householders to put more money than ever into savings, data showed on Tuesday.
 
Europe's largest economy contracted by 1.8 per cent quarter on quarter and by 3.1 per cent on the year, the Federal Statistics Office said. The readings, for which a Reuters poll had forecast drops of 1.7 per cent and 3.0 per cent respectively, were significantly weaker than the euro zone average. German households' disposable income increased slightly as the government ploughed billions of euros into job protection schemes and cash handouts