More than three years later, germany plunged back into recession. The Destatis Institute, the German statistical office, announced on Thursday that the Gross domestic product of the European Union’s largest economy fell by 0.3% in the first quarter of 2023. It follows an initial contraction of 0.5% in the last quarter of 2022.
Recession characterizes an economic situation in which GDP declines for two consecutive quarters. A state that Germany had not known since 2020, at the time of the health crisis caused by the Covid-19. GDP had fallen sharply in the first and second quarters. National wealth had collapsed by 5%.
The German economy has suffered from gas cuts from the Russiaat war with Ukraine since February 2022. Largely dependent on Russian energy, Germany has been forced to reduce its volume import, Moscow having decided to sharply increase its prices. Despite a decline in energy prices, inflation is at a high level, estimated at 7%.
Despite this mixed picture, the German government believes in an upturn in the economy in the coming months. On April 26, the Minister of Economy and Climate Robert Habeck forecast GDP growth of 0.4% in 2023, before a marked improvement in 2024, with +1.6% expected, during a conference Press.