German economy enters recession and shrinks 0.3% in the 1st quarter
Germany’s economy shrank slightly in the first quarter of 2023 compared with the previous three months, thus entering a technical recession, data showed on Thursday.
A preliminary estimate showed that GDP stalled at zero growth in the first quarter – meaning that Germany would have narrowly escaped a recession.
What did the data show?
The Gross Domestic Product (GDP) fell 0.3% in the quarter, when adjusted for prices and seasonal effects, according to data from the Federal Statistics Office, Destatis.
“After GDP growth entered negative territory at the end of 2022, the German economy now records two consecutive negative quarters,” said the President of Destatis Brand Ruth.
The January-March figures follow a 0.5% drop in the fourth quarter of 2022. A recession is commonly defined as two successive quarters of contraction.
Inflation continued to affect the German economy during the quarter, the office said. that was
reflected in household consumption, which dropped 1.2% from the previous quarter after price and seasonal adjustments.
There was a ray of light with regard to investments, which rose in the first three months of the year after a weak second half of 2022.
rc/nm (dpa, AFP, Reuters)
Source: DW
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