Unexpected decline of German economy in 4Q
2023.01.30 05:15
Unexpected decline of German economy in 4Q
By Tiffany Smith
Budrigannews.com – According to data released on Monday, the fourth quarter saw an unexpected decline in the German economy. This is a sign that the war in Ukraine may be causing Europe’s largest economy to enter the much-anticipated recession.
The federal statistics office reported a 0.2% quarter-over-quarter adjustment to gross domestic product.
The German economy experienced quarterly growth of 0.5%, which was revised upwards in the preceding quarter.
Since many experts anticipate that the economy will also shrink in the first quarter of 2023, the decrease in the fourth quarter indicates that a recession, which is typically defined as two consecutive quarters of contraction, is now more likely.
According to the economy ministry, things should get better in Germany starting in the spring.
The German government increased its economic forecast for 2023 last week, now anticipating a 0.2% increase in GDP, up from a fall prediction of a 0.4% decline.
