Germany's economy falls into recession due to inflation and decreased consumer spending.

Germany's economy has entered a technical recession after GDP fell by 0.3% in Q1 2023, following a 0.5% drop in Q4 2022. High inflation has reduced household consumption, while weak demand for goods has hit the crucial manufacturing sector. The eurozone is also grappling with high inflation and rising interest rates, which are squeezing household consumption and business investment. The European Central Bank is expected to continue hiking interest rates to bring down prices, with inflation remaining well above the central bank's 2% target.