German Economy Contracts in 3rd Quarter, Leader Vows to Fix Spending Crisis

Germany's economy contracted by 0.1% in the third quarter of 2023, putting the country on the brink of a technical recession. The decline in GDP follows stagnant growth in the first two quarters of the year. Inflation has fallen to a two-year low, but price rises continue to burden consumers, leading to a decrease in consumer spending. German exports and imports also declined. The Bundesbank expects a further dip in growth in the fourth quarter but predicts a return to slight growth in the first quarter of 2024. However, economists are concerned about a recent court ruling that could lead to public sector cuts and negatively impact the economy.