The German economy in technical recession

Economy of Germany fell into recession, according to data published today by Destatis. The data surprised negatively. And very much. A month ago, when publishing preliminary estimates of GDP data, the German statistical office announced that recession managed to avoid.

Germany's GDP is falling

In the first quarter of this year Germany's Gross Domestic Product (GDP) fell by 0,3%. quarter-on-quarter, after it plunged by 2022% in the fourth quarter of 0,5. Thus, the economy found itself in a technical recession. The data turned out to be quite a surprise, because the preliminary reading said that in the first three months of the year, GDP did not change (0,0 percent Q/Q). These were also market forecasts.

Year-on-year, GDP recorded a decrease of 0,2 percent against the forecasted increase of 0,2 percent. compared to an increase of 0,2 percent. in the last quarter of 2022.

Press release destiny on Germany's GDP.

Worse consumer sentiment

This is not the only disappointing data from Germany published today. The Consumer Confidence Index prepared by GfK for June had a value of -24,2 points, while the expected reading was -23,8 points.

Yesterday was just as disappointing index of the Ifo institute. In May, it fell to 91,7 points. from 93,4 points in April, which was well below economists' forecasts (93 points).

Data for Q2023 2023 are bad, and the latest reports from the German economy do not suggest any significant improvement in the coming quarters. Economists estimate that both in the second quarter and in the third quarter of 2023, the German economy stagnated, and a stronger rebound will come only in the fourth quarter of XNUMX.

In response to the data published today German DAX continues its decline, extending the ongoing downward correction to 4 days. The euro weakens as well, falling against the dollar to 1,0722 from 1,0749 yesterday and against 1,1091 on May 4. Course EUR / USD is now the lowest in 2 months.