Germany's Economy Enters Recession with Revised First-Quarter GDP Data

The German economy has entered a technical recession as Q1 GDP was revised down to -0.3%, following a 0.5% contraction in Q4 2021. The decline was driven by a 1.2% fall in consumer spending, as households tightened their belts. While it is unlikely that GDP will continue to fall in the coming quarters, there is no strong recovery expected either. This comes amid high inflation and interest rates across the region, with the European Central Bank expected to raise rates again at its next meeting on June 15.