Germany has slipped into recession as last year’s energy price shock takes its toll on consumer spending.
Output in Europe’s largest economy dropped 0.3% in the first three months of the year, following a 0.5% contraction at the end of 2022, official data showed Thursday.
The Federal Statistical Office downgraded its previous estimate of zero growth in gross domestic product compared with the previous quarter. A recession is defined as two consecutive quarters of declining output.
“The persistence of high price increases continued to be a burden on the German economy at the start of the year,” the office said. “This was particularly reflected in household final consumption expenditure, which was down 1.2% in the first quarter of 2023.”
Claus Vistesen, chief euro area economist at Pantheon Macroeconomics, said spending by consumers in the first quarter was crimped by “the shock in energy prices.”
The recession may prove to be short-lived, however, as timelier PMI survey data showed earlier this week that business activity in Germany expanded again in May, despite a sharp downturn in manufacturing.
more recommended stories
India Successfully Puts into Orbit its First 2nd Gen Navigation Satellite
SRIHARIKOTA:India successfully put into orbit the.
24 Ministers of Siddaramaiah-led Govt take Oath in Karnataka
BENGALURU:A week after assuming power, the.
Canadian Party Calls on Govt to Stop Deportation of 150 Punjabi Students
TORONTO:Canada’s New Democratic Party (NDP) has.
Kim Jong-un’s Daughter Seen in Public ‘Could Inherit his Power’
SEOUL:The daughter of North Korean leader.
SC Refuses to Entertain PIL for Inauguration of New Parl Building by President
NEW DELHI:The Supreme Court on Friday.
Australian Teen Arrested after Firing Gun in School
CANBERRA:A 15-year-old boy was arrested after.
Wholesale Reservation Frustrates the Very Purpose Of Reservation, Violates Article 14: SC
NEW DELHI:The Supreme Court has said.
Cholera Death Toll Rises to 17 in South Africa
JOHHANESBURG:A total of 17 people have.
S Korea, US Troops to Hold Massive Live-Fire Drills Near Border with N Korea
SEOUL:The South Korean and U.S. militaries.
US State Department’s top China Policy Official to Step Down
WASHINGTON:The U.S. State Department’s top China.