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German economy enters recession
World
25-05-2023 | 03:57
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German economy enters recession
The German economy contracted slightly in the first quarter of 2023 compared with the previous three months, thereby entering recession, data from the statistics office showed on Thursday.
Gross domestic product fell by 0.3 percent for the quarter when adjusted for price and calendar effects, the data showed. This follows a decline of 0.5 percent in the fourth quarter of 2022. A recession is commonly defined as two successive quarters of contraction.
A preliminary estimate had shown GDP stagnating in the first quarter and Germany skirting a recession.
Inflation continued to be a burden on the German economy at the start of the year, the statistics office said. This was reflected in household consumption, which was down 1.2 percent quarter-on-quarter after price, seasonal and calendar adjustments.
By contrast, investment was up in the first three months of the year, following a weak second half of 2022. There were also positive contributions from trade.
Reuters
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