According to an update to growth statistics, persistent inflation had a role in contributing to Germany’s recession in the 1st 3 months of the year.

That came after a contraction of 0.5 percent in the final 3 months of the previous year. A country is said to be in a recession if its economy shrinks for 2 consecutive 3-month qtrs.

Inflation in Germany was 7.2 percent in April, higher than the average for the euro area. But lower than the 8.7 percent in the United Kingdom

Government spending decreased by 4.9 percent. While car sales decreased as a result of reduced govt grants for hybrid and electric cars.

According to LBBW bank analyst Jens-Oliver Niklasch. “The initial signs suggest that things will continue to be equally weak in the 2nd qtr of 2023.“

The IMF revised its prediction for the United Kingdom from negative 0.3 % to growth of 0.4 % making Germany the lowest of the major economies in the world this year, contracting by 0.1 %.