The German economy went into recession over the winter, with gross domestic product falling by 0.3% in the first 3 months of the year compared to the previous quarter. The information was disclosed by the Federal Department of Statistics Destatis. In an initial estimate, the authority had once again assumed a stagnation of the economic trend for the first quarter. “After the GDP had already fallen into negative territory at the end of 2022, the German economy thus recorded two consecutive negative quarters”, says Ruth Brand, president of Destatis. If economic output falls for two consecutive quarters, economists speak of a technical recession. This does not mean, however, that the entire year is bad. Thanks in large part to a mild winter in Germany, worst-case scenarios, such as a gas shortage that would have left deep scars on the economy, did not materialize. Private consumption failed to sustain the economy in the face of high inflation rates.
According to new data, private households spent less on food and drink, clothing, footwear and furniture in the first quarter of 2023 than in the previous quarter. For consumers, high inflation is a challenge as it erodes their purchasing power as people can pay less with every euro. Although the upward trend in prices has weakened recently, the annual inflation rate of 7.2% recorded in April was still relatively high.
Source: IL Tempo

John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.