German economy entered recession in Q1

BERLIN -- The German economy contracted in the first quarter of 2023 compared with the previous three months, thereby entering recession, data from the statistics office showed on Thursday. Gross domestic product fell by 0.3 percent for the quarter when adjusted for price and calendar effects, a second estimate showed. The first estimate had shown GDP stagnating in the first quarter and Germany skirting a recession. "Under the weight of immense inflation, the German consumer has fallen to his knees, dragging the entire economy down with him," Andreas Scheuerle, an analyst at DekaBank, said. The German Bundesbank, however, expects the economy to grow modestly in the second quarter as a rebound in industry more than offsets stagnating household consumption and a slump in construction, according to a monthly economy report published on Wednesday.