Business & Economy

German economy in recession after 0.3% decline in Q1

Berlin, May 25 (EFE).- The German economy contracted by 0.3 percent in the first quarter of the current year, entering a technical recession, government data showed on Thursday.

The new data revise the provisional figures of the German statistics office Destatis.

The previous data said the Gross Domestic Product (GDP) had stagnated, skirting the recession in January-March, after a 0.5 percent drop in the last quarter of 2022.

“After GDP growth entered negative territory at the end of 2022, the German economy has now recorded two consecutive negative quarters,” Federal Statistical Office President Ruth Brand said in a statement.

Inflation continued to hit the German economy, reflected in shrinking household consumption, down 1.2 percent quarter-on-quarter.

Inflation began declining after peaking in October by more than 10 percent and recording 7.2 percent year-on-year in April.

However, positive signs emerged from exports and investment and a recovery in the construction and industrial equipment sector, machinery production, household appliances, and automobiles.

Exports increased 0.4 percent in this first quarter compared to the last in 2022.

Imports, on the other hand, fell by 0.9 percent, according to Destatis data, highlighting the decline in fuels, minerals, and chemical products.

Employment also rose, reaching 45.6 million in the workforce, representing a year-on-year increase of 446,000 citizens or one percent. EFE


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