- Germany Officially Entered Recession.
- The first quarter of 2023’s GDP declined from zero to -0.3%.
Today, the world’s fourth-largest economy, Germany, was confirmed to be in recession due to the drop in the euro’s value. Meanwhile, the dollar reached a two-month peak as demand for safe-haven assets rose because of growing concerns about a US default on its debts.
The biggest economy in Europe Germany was officially declared to be in recession. According to the German statistics office’s data, the first quarter of 2023’s GDP (gross domestic product) decreased from zero to -0.3%. This came after a 0.5% drop in the final quarter of 2022.
Russia’s invasion of Ukraine caused an energy crisis in Germany, which is still being battled. Also, energy prices have increased due to dwindling supplies from a conflicting Russia, which is fueling inflation. According to the data, household spending in Germany fell sharply in the first quarter. Final consumption spending fell by 1.2% during that time.
However, when there is negative growth for two consecutive quarters, a technical recession takes place.
