Germany Officially Enters into Recession as Final Data Shows Contraction in 1Q23

Germany has officially entered into a recession after the final data showed a slight contraction in the economy in the first quarter of 2023, compared to the previous three months.

The data from the statistics office showed that gross domestic product in the first quarter fell by 0.3%. This came after a decline of 0.5% in the final quarter of 2022.

Inflation continues to weigh on the European biggest economy as household consumption was down 1.2% QoQ. In April 2023, inflation in Germany rose 7.2% on the same month a year earlier, a drop from 7.4% in March 2023 and 8.7% in February 2023. However, it was still higher than a 2.0% target range by the central bank.