German economy enters recession after GDP falls for the second successive quarter

May 25, 2023

The German economy was in recession in early 2023 after households spending in the country 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.

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