Germany s GDP declined by 0.3 per cent in the period from January to March. It follows a drop of 0.5 per cent in Europe s largest economy during the last quarter of 2022
Due to a slight shrinkage in GDP during Q1 of 2023, Germany has entered a technical recession. Household consumption dropped by 1.2% due to rising energy costs while the discontinuation of government subsidies led to a decline in new car purchases. , Economy News, Times Now
This follows a drop of 0.5 per cent in Europe's biggest economy during the last quarter of 2022, as the country battled the energy crisis that was unleashed due to Russia's invasion of Ukraine.
Inflation has taken a heavy toll on the German economy, with consumers spending less on items such as food and clothing. To make matters worse, the outlook for the rest of the year isn't looking much brighter.