Economic news

German economy shows signs of recession

2023.02.24 06:42

German economy shows signs of recession
German economy shows signs of recession

German economy shows signs of recession

By Ray Johnson

Budrigannews.com – As household consumption and capital investment were impacted by inflation and the energy crisis, the German economy contracted more than anticipated in the final three months of 2022.

The statistics office reported on Friday that the fourth quarter of 2022 saw a 0.4% decrease in the German economy compared to the previous three months.

Adjusted for price and calendar effects, preliminary office data indicated a 0.2% quarter-on-quarter contraction. When compared to the previous three months, gross domestic product experienced a slight increase of 0.5 percent in the third quarter of 2022.

According to Carsten Brzeski, global head of macro at ING, a second consecutive drop in the Ifo’s current assessment component, a falling manufacturing PMI, low consumer confidence, and a willingness to spend close to historical lows all point to a contraction of the German economy in the first quarter.

The fourth quarter’s disappointing end result raises concerns of a winter recession. It is common to define a recession as two consecutive quarters of contraction.

Commerzbank (ETR:) states, “Today’s numbers show that the sharp rise in energy prices has slowed the economy noticeably despite the government’s extensive aid measures.” Ralph Solveen, an economist, said. Solveen stated that a noticeable economic recovery is unlikely in light of the global tightening of monetary policy.

According to the statistics office, consumers spent less in the fourth quarter than in the third quarter after relief measures like the fuel discount and the 9-euro transportation ticket ended. Government spending increased 0.6% in comparison to the previous quarter, while household spending decreased by 1.0%.

The statistics office says that investment also affected how well the economy did. Adjusted for inflation, seasonality, and calendar effects, machinery and equipment investment decreased 3.6% in the fourth quarter, while construction investment decreased 2.9%.

When compared to the third quarter, exports of goods and services decreased by 1.0% in the fourth quarter. According to the statistics office, this was because of the difficult international situation, which was characterized by persistent disruptions in supply chains and high energy costs.

German economy shows signs of recession

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 76,050.38 1.50%
vested-xor
Vested XOR (VXOR) $ 3,405.08 99,999.99%
ethereum
Ethereum (ETH) $ 2,918.54 4.01%
tether
Tether (USDT) $ 1.00 0.06%
solana
Solana (SOL) $ 203.51 8.91%
bnb
BNB (BNB) $ 596.81 0.45%
usd-coin
USDC (USDC) $ 1.00 0.09%
xrp
XRP (XRP) $ 0.550766 0.34%
dogecoin
Dogecoin (DOGE) $ 0.197161 2.81%
staked-ether
Lido Staked Ether (STETH) $ 2,920.22 4.05%
cardano
Cardano (ADA) $ 0.435147 17.27%
tron
TRON (TRX) $ 0.16144 0.41%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,457.61 4.11%
the-open-network
Toncoin (TON) $ 4.91 0.67%
avalanche-2
Avalanche (AVAX) $ 28.21 5.41%
shiba-inu
Shiba Inu (SHIB) $ 0.000019 1.51%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 75,958.35 1.46%
weth
WETH (WETH) $ 2,920.31 4.19%
chainlink
Chainlink (LINK) $ 13.02 6.12%
bitcoin-cash
Bitcoin Cash (BCH) $ 372.89 1.11%
sui
Sui (SUI) $ 2.30 1.76%
polkadot
Polkadot (DOT) $ 4.29 5.29%
leo-token
LEO Token (LEO) $ 6.30 1.13%
usds
USDS (USDS) $ 0.993802 0.23%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,071.78 4.07%
litecoin
Litecoin (LTC) $ 71.36 0.46%
uniswap
Uniswap (UNI) $ 8.76 2.03%
near
NEAR Protocol (NEAR) $ 4.25 2.51%
aptos
Aptos (APT) $ 9.70 1.16%
pepe
Pepe (PEPE) $ 0.000011 4.01%
bittensor
Bittensor (TAO) $ 500.68 3.47%
internet-computer
Internet Computer (ICP) $ 7.76 0.50%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.40 1.09%
dai
Dai (DAI) $ 0.999234 0.24%
ethereum-classic
Ethereum Classic (ETC) $ 20.25 1.65%
monero
Monero (XMR) $ 163.82 0.24%
stellar
Stellar (XLM) $ 0.101167 2.90%
crypto-com-chain
Cronos (CRO) $ 0.112434 30.95%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.16%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.368125 7.83%
kaspa
Kaspa (KAS) $ 0.112755 4.56%
whitebit
WhiteBIT Coin (WBT) $ 19.55 1.16%
aave
Aave (AAVE) $ 182.72 1.35%
blockstack
Stacks (STX) $ 1.66 0.31%
okb
OKB (OKB) $ 40.12 0.63%
dogwifcoin
dogwifhat (WIF) $ 2.36 1.55%
first-digital-usd
First Digital USD (FDUSD) $ 0.99932 0.01%
arbitrum
Arbitrum (ARB) $ 0.57305 0.19%
filecoin
Filecoin (FIL) $ 3.72 0.31%
mantle
Mantle (MNT) $ 0.657982 3.98%