Bbc News Germany Recession

Germany Enters Recession Amidst Persistent Inflation

Economic Slowdown Persists

According to revised data, Germany's economy has officially entered a recession in the first quarter of 2023. Persistent inflation, exacerbated by the ongoing COVID-19 pandemic, has contributed significantly to the economic downturn.

GDP Contraction

The Bundesbank, Germany's central bank, has issued a warning that the country may already be experiencing recession. Official figures indicate that the economy contracted by 0.2% in the first three months of the year, marking two consecutive quarters of negative growth.

Inflation Impact

Inflation has played a significant role in Germany's economic woes. Rising energy and food prices have eroded consumer spending and business confidence. The Bundesbank has raised interest rates in an attempt to curb inflation, but this has also led to higher borrowing costs, slowing down economic activity.

Eurozone Implications

Germany's recession is also a concern for the broader eurozone economy. Revised data shows that the eurozone economy contracted at the end of last year, raising fears of a broader economic slowdown in the region.