The German economy has now entered a recession, reports CNBC. GDP fell 0.3 percent in the first quarter of this year after a 0.5 percent decline in the final quarter of 2022.
In a formal sense, the new figures mean a recession, as two consecutive quarters of negative growth are technically used to define a recession.
Inflation, the war in Ukraine and sanctions against Russia have put the German economy under severe pressure, causing those households to tighten significantly.
Household spending fell by 1.2 percent during the first quarter of this year.
The European Central Bank (ECB) is expected to raise the key interest rate further at its meeting on 15 June.
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