The German economy shrank by 0.3% in the first quarter, according to final data released this Thursday by the German Federal Statistical Office (Destatis). meaning it has entered a technical recession after two consecutive negative quarters.
These figures correct the preliminary figures previously released by the department and indicated a stagnation of gross domestic product (GDP) between January and March 2023, following the 0.5% decline in the last quarter of 2022.
“After the contraction that was reflected at the end of 2022, another negative quarter was recorded,” said the president of Destatis, Ruth Brand, in a statement.
The contraction in GDP was due to the fall in consumption due to inflation which, although beginning to be curbed, after peaking above 10% in October, reached 7.2% year on year in April.
However, there were positive impulses in exports and investment, as well as a recovery in the construction and industrial equipment sectors, in the production of machinery, household appliances and cars.
For example, total exports increased by 0.4% in this first quarter compared to the last quarter of 2022.
Imports, on the other hand, fell 0.9%, according to detailed data from Destatis, which highlights the decline in fuels, minerals and chemicals.
Employment also increased, reaching 45.6 million employed people, an annual increase of 446,000 citizens or 1.0% in percentage terms.
According to this data, which confirms the trend of the German Federal Employment Agency, the pace of job growth continues to accelerate.
Source: DN
