Germany officially in recession

Shannon-Dale Reid

5 days ago

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Via Legal Grounds

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Within the first three months of the year, it has been reported that Germany which has the 4th largest GDP in the world has been pushed into recession with high inflation.

Analysts say Europe’s largest economy was also badly affected when Russian gas supplies dried up after the invasion of Ukraine.

It says the economy contracted by 0.3% between January and March, and was followed a 0.5% contraction in the last three months of last year.

A country is deemed to be in recession when its economy shrinks for two consecutive three-month periods, or quarters.

Germany’s inflation rate stood at 7.2% in April, above the euro area’s average but below the UK’s 8.7%.

Analysts also noted that higher prices have weighed on household spending on things such as food, clothing and furniture.

They also noted that industrial orders are also weaker, reflecting the impact of higher energy prices on businesses.

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