The German economy saw a decrease of 0.3% in the first quarter of 2023 versus the previous trimester, according to a final report published by the Federal Statistical Office (Destatis), recording the second consecutive decline and entering a technical recession. The annual GDP drop was 0.2% after getting price-adjusted, and 0.5% price- and calendar-adjusted.
High inflation and interest rates continued to be a burden on the economy at the start of this year, with household consumption expenditure going down by 1.2%. On the other hand, positive signals came from rising investment and foreign trade. The biggest growth of 6.1% was registered in the construction sector.
Manufacturing recorded a considerable 3.2% year-on-year increase, with employment going up by 1% or nearly half a million. Compared to other EU member states, Germany's economic development lagged at the start of 2023.
