The German economy slightly shrank in the first quarter of 2023 compared to the previous three months, entering recession, according to statistics office data released on Thursday.
After accounting for price and calendar changes, the figures showed that the gross domestic product decreased by 0.3% for the quarter. This comes after a 0.5% fall in the fourth quarter of 2022. A recession is commonly defined as two successive quarters of contraction, Reuters reported.
According to an early assessment, the first quarter’s GDP stagnated and Germany narrowly avoided recession.
As per the statistics agency, inflation was still a burden on the German economy at the beginning of the year. After accounting for pricing, seasonal, and calendar changes, household consumption was down 1.2% quarter over quarter as a result.
In contrast, after a dismal second half of 2022, investment increased in the first three months of this year. Trade made helpful contributions as well.