Germany which is World's 4th Largest Economy faces Recession
Statistics show that germany experienced an unexpected economic slowdown in the first quarter of this year. As a result, the world's 4th largest economy has now slipped into recession. As a result, the value of the Euro has fallen.
Germany's gross domestic product, or GDP, fell 0.3 percent in the January-March quarter, according to a report released by Germany's central statistics office on Thursday. It was 0.5 percent in the last quarter of last year. GDP has fallen for two consecutive quarters, pushing the country's economy into recession.
These figures are a huge setback for the German government. The country's government had predicted that its growth rate would double by the end of January, as it failed to regularize its winter energy deficit. That is, GDP will increase from 0.2 percent to 0.4 percent. Economists said high inflation has weighed on consumer spending, with prices rising 7.2 percent this april from last year.
GDP is the total value of goods and services produced in a country in a given year. But some experts question whether GDP is the right measure to measure the economy because it does not take into account spending. Finally, it is worth noting that germany suffered an economic recession at the beginning of 2020 after the corona pandemic began to spread in Europe.
Germany's gross domestic product, or GDP, fell 0.3 percent in the January-March quarter, according to a report released by Germany's central statistics office on Thursday. It was 0.5 percent in the last quarter of last year. GDP has fallen for two consecutive quarters, pushing the country's economy into recession.
These figures are a huge setback for the German government. The country's government had predicted that its growth rate would double by the end of January, as it failed to regularize its winter energy deficit. That is, GDP will increase from 0.2 percent to 0.4 percent. Economists said high inflation has weighed on consumer spending, with prices rising 7.2 percent this april from last year.
GDP is the total value of goods and services produced in a country in a given year. But some experts question whether GDP is the right measure to measure the economy because it does not take into account spending. Finally, it is worth noting that germany suffered an economic recession at the beginning of 2020 after the corona pandemic began to spread in Europe.