Robert Besser
03 Feb 2023, 01:01 GMT+10
FRANKFURT, Germany: Data released this week showed that the German economy unexpectedly shrank in the fourth quarter of 2022, indicating that Europe's largest economy could be entering a recession, though less severe than originally predicted.
The federal statistics office said that adjusted gross domestic product (GDP) decreased 0.2 percent quarter-on-quarter in adjusted terms, while in the previous quarter, the German economy grew by 0.5 percent, compared with the previous three months.
A recession, defined as two successive quarters of contraction, has therefore become more likely.
"The winter months are turning out to be difficult, although not quite as difficult as originally expected. The severe crash of the German economy remains absent, but a slight recession is still in the cards," said VP Bank chief economist Thomas Gitzel, as quoted by Reuters.
In the government's annual report released last week, German Economy Minister Robert Habeck said that the economic crisis caused by Russia's invasion of Ukraine was manageable, but the government is remaining cautious due to high energy prices and interest rate increases.
The economic situation should improve from spring onwards, the government said, after revising its GDP forecast for 2023 by predicting growth of 0.2 percent, up from a forecast in autumn of a 0.4 percent fall.
Declining private consumption was the primary reason for the decrease in fourth-quarter GDP, this week's figures showed.
"Consumers are not immune to an erosion of their purchasing power due to record high inflation," noted Commerzbank chief economist Joerg Kraemer, according to Reuters.
Get a daily dose of Baton Rouge Post news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Baton Rouge Post.
More InformationNEW YORK, New York - Wall Street continued its advance on Tuesday as investors continued to weigh up the health ...
WASHINGTON D.C.: The US State Department has issued a travel warning regarding dangerous fake pills sold at pharmacies in Mexico, ...
FRANKFURT, Germany: The German Automobilwoche magazine has reported that as part of its efforts to switch to selling electric vehicles ...
NEW YORK, New York - U.S. stocks rallied on Monday following the weekend buy-in of Credit Suisse by UBS, which ...
WASHINGTON D.C.: The US Federal Reserve Bank has announced that cash-strapped banks throughout the US borrowed some $300 billion during ...
BEIJING, China: Following the inability of China Huarong Asset Management Co Ltd to release financial reporting obligations in 2020, China ...
WASHINGTON D.C.: The Alzheimer's Association is lobbying Congress to enable early Medicare coverage of a new class of drugs, beginning ...
DUBLIN, Ireland: Ireland has the world's fourth highest consumption of cocaine, according to a new United Nations report.The UN further ...
TAIPEI, Taiwan: The founder of chip manufacturer TSMC, Morris Chang, said that he supports the efforts of the US to ...
GENEVA, Switzerland: An annual global survey by Swiss air purifier maker IQAir reported that Lahore, Pakistan, was the city with ...
MENLO PARK, California: As the tech industry prepares for a major economic downturn, Facebook-parent company Meta Platforms has announced that ...
washington - U.S. officials are reacting to the joint statement by China and Russia on the Russian war on Ukraine. ...