Inflation and Russian ban push German economy into recession.
TL;DR
The German economy entered a recession in Q1 2023, with GDP falling by 0.3% due to high inflation affecting household spending. The decline follows a 0.5% contraction in Q4 2022. The German finance minister expressed concern over the country's potential for growth compared to other developed economies. The economy minister attributed the recession to Germany's previous reliance on Russia for energy supply. Household consumption was down 1.2% quarter on quarter, while government spending decreased by 4.9%. Investment in machinery and equipment increased by 3.2%, and exports rose 0.4%. The German Bundesbank expects modest growth in Q2 2023.
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