The German economy was in recession in early 2023 after household spending in Europe’s economic engine finally succumbed to the pressure of high inflation. Gross domestic product fell by 0.3% in the first quarter of the year when adjusted for price and calendar effects, a second estimate from the statistics office showed on Thursday. This follows a decline of 0.5% in the fourth quarter of 2022. A recession is commonly defined as two successive quarters of contraction.
German GDP data showed “surprisingly negative signals”, finance minister Christian Lindner said on Thursday. The IMF had earlier predicted a recession in 2023 only in Germany and Britain among European countries.
Robert Habeck, Germany’s economy minister, said his nation’s previous high dependency on Russia for energy supply led to the recession but the growth forecasts were much bleaker. “We’re fighting our way out of this crisis.”
Germany is Europe’s largest economy and its health directly affects the health of the 20-member eurozone and the wider EU, the world’s third-largest economy, after the US and China.
German GDP data showed “surprisingly negative signals”, finance minister Christian Lindner said on Thursday. The IMF had earlier predicted a recession in 2023 only in Germany and Britain among European countries.
Robert Habeck, Germany’s economy minister, said his nation’s previous high dependency on Russia for energy supply led to the recession but the growth forecasts were much bleaker. “We’re fighting our way out of this crisis.”
Germany is Europe’s largest economy and its health directly affects the health of the 20-member eurozone and the wider EU, the world’s third-largest economy, after the US and China.