Business Standard

Germany's GDP shrinks by 0.3% in first quarter, puts economy into recession

New figures show the German economy suffered an unexpected dip in the first quarter of this year, putting the country formally into recession

Germany

Photo: Unsplash

AP Berlin

Listen to This Article

New figures show the German economy suffered an unexpected dip in the first quarter of this year, putting the country formally into recession.
Data released Thursday by the Federal Statistical Office shows Germany's gross domestic product, or GDP, down by 0.3 per cent in the period from January to March. This follows a drop of 0.5 per cent in Europe's biggest economy during the last quarter of 2022. Two consecutive quarters of decline constitute a technical recession.
The figures are a blow to the German government, which last month boldly doubled its growth forecast for this year after a feared winter energy crunch failed to materialise.
It said GDP will grow by 0.4 per cent up from a 0.2 per cent expansion predicted in late January a forecast that may now need to be revised downward.
Economists said high inflation hit consumer spending, with prices in April 7.2 per cent higher than a year ago.
GDP reflects the total value of goods and services produced in a country. Some experts question whether the figure alone is a useful indicator of economic prosperity given that it doesn't distinguish between types of spending.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: May 25 2023 | 2:10 PM IST

Explore News