The German economy shrank in the fourth quarter of 2023, according to the monthly report released on Monday by the Deutsche Bundesbank.
The central bank pointed out that the country's gross domestic product (GDP) fell by 0.3% in the last trimester of the year after "stagnating in the first three quarters ... With the second decline in economic output in a row, the German economy would be in a technical recession."
The institution also predicted a potential decrease in economic output during the initial quarter of 2024, attributed to reduced industrial foreign demand, decreased consumer spending, increased financing costs, dampened investments and climate policy uncertainty.
