2023-05-25 06:33:21
Germany’s economy – Port of Hamburg
Data from the German Statistical Office showed, on Thursday, that the German economy contracted slightly in the first quarter of 2023 compared to the previous three months, thus entering a recession.
The data showed that gross domestic product fell 0.3 percent when adjusted for price and calendar effects on a quarterly basis.
The German economy contracted in the last quarter of last year by 0.5 percent in the fourth quarter of 2022.
A technical recession is generally defined as two consecutive quarters of contraction.
Economists polled by Archyde.com had expected the German economy to contract by 0.1 percent on a quarterly basis.
The data also showed that the gross domestic product decreased by 0.2 percent on an annual basis in the first quarter, while expectations indicated a growth of 0.2 percent.
The Statistical Office said inflation remained a drag on the German economy at the start of the year. This was reflected in household consumption, which fell by 1.2 percent on a quarterly basis following adjusting for price and calendar effects.
Contrary to that trend, investment increased in the first three months of the year following weakening in the second half of 2022. Trade also made positive contributions.
The Statistics Office publishes a detailed report showing that data.
“The recession was less severe than some of the early forecasts made at the start of the crisis, but mild winter weather and the easing of supply chain problems in the wake of the Covid pandemic” were not enough to lift the economy out of recession risk, said Carsten Brzeski, head of macros at ING Bank. “.
Whereas, Jens Oliver Niklasch, banking analyst at LBBW Bank, notes, “The negative revision to the growth figures was not surprising following a series of weak economic indicators.”
“Initial indications are that things will remain similarly weak in the second quarter” of 2023, Niklas said.
The latest recession in Germany came as the coronavirus pandemic spread across Europe at the start of 2020, prompting governments to effectively shut down large sectors of the economy.
#Germany
Germany’s economy
1685000117
#Officially #Germany #entering #recession
