- German GDP shrank 0.3% in Q1 due to weak consumer and industrial activity.
- This marks the second consecutive quarterly decline in GDP, meeting the technical definition for a recession.
- Household consumption dropped 1.2% from the previous quarter due to high inflation and rising interest rates.
- Private sector investment rebounded in Q1 from a weak second half of 2022, driven up 3.9% by higher construction activity.
- Germany is expected to be the weakest performer among the world’s big economies this year.
Fall in German GDP increases threat of deep recession in EU’s largest economy
German GDP shrank 0.3% in Q1 due to weak consumer and industrial activity, raising fears of sustained recession in the largest EU economy.