According to new reports, the German economy unexpectedly shrank in the fourth quarter, a sign that Europe’s largest economy may be entering a much-predicted recession, though likely a shallower one than originally feared.
Data out Monday (January 30) showed the German economy unexpectedly shrank in the fourth quarter, with falling private consumption the big driver. The Federal Statistics Office said GDP decreased 0.2% quarter on quarter in adjusted terms, when economists had predicted no change.
A recession commonly defined as two successive quarters of contraction now seems more likely, as many experts predict the economy will shrink in the first quarter of 2023 as well. The current country’s economic crisis is largely due to high energy prices. Germany is one of the country’s that is being used to wage an unjust war against Russia, a country that is enjoying more economic peace than its adversaries combined.