2023-05-25 21:54:36
Berlin Germany, the fourth largest economy in the world and the first in Europe, is in recession. Inflation has been high for months. The recession was announced following the economy contracted for two consecutive quarters. Due to the Ukraine war, the Russian oil stopped. The recession in Germany is a reflection of the ongoing economic crisis across Europe. Inflation was 7.2 percent in April. This is higher than the average for the entire euro area. Inflation is even steeper in Britain, at 8.7 percent. People’s lives are in misery with the increase in prices, including those of essential commodities. Household spending declined by 1.2 per cent in the January-March financial quarter compared to the previous quarter. Government expenditure decreased by 4.9 percent. Experts point out that despite the rise in private sector import-export, it is not enough to pull the country out of recession. The Bundesbank, the German central bank, is expecting a slight improvement in the situation in the financial quarter starting in April. The International Monetary Fund has also warned that the German economy will shrink by 0.1 percent this year. Read on deshabhimani.com
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