Rebound in German Apartment Construction Signals Economic Recovery
Building permits for apartments in Germany increased by 4.9% in April, marking a continuous rise in residential construction. This growth indicates a tentative recovery in Germany's property sector, which has been struggling since 2022. Experts predict economic growth for Germany following two years of economic contraction.
In Germany, building permits for apartments rose by 4.9% in April, marking the second month of consecutive growth in residential construction plans. According to data from the federal statistics office released Wednesday, 18,500 building permits for new apartments were issued in April, 900 more than a year earlier. March also saw a rise, with a 5.8% increase amounting to 1100 permits.
Between January and April, building permits registered an increase of 3.7% compared to the previous year, hinting at a slow recovery for Germany's property sector from its severe downturn since 2022. Building permits are considered a key short-term indicator of construction activity within the country.
With growth expectations for 2023, Germany's economy is predicted to rebound following two years of shrinkage. On Thursday, four economic institutes raised their forecasts for the country's economic performance in 2025 and 2026, signaling optimism for continued recovery.
(With inputs from agencies.)
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