The German Economic Recession - A Close Look at the Decline in GDP and its Effects on Consumer Spending and Exports

2023-11-27 15:18:28

Berlin ∙ In the third quarter of this year, the setback directly to the German economy. After two quarters of stagnation, gross domestic product (GDP) fell 0.1% in the third quarter. Economists expect Germany to enter a technical recession early next year.

If growth in the fourth quarter is also negative, the warning is that Germany will enter a technical recession. In the first two quarters, economic output effectively stagnated, showing zero growth in the first quarter and 0.1% growth in the second quarter. Inflation has hit a two-year low. Inflation fell sharply from 6.1% in August to 3.8% in October, despite a rise of more than 10% last year. Consumer spending, which accounts for two-thirds of German GDP, fell 0.3% in the third quarter. German exports fell 0.8%, while imports fell sharply by 1.3%.

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