Germany, Europe's Largest Economy, Falls Into Recession
Germany, Europe's Largest Economy, Falls Into RecessionGermany is the world's fourth-largest economy.

Germany, Europe's largest economy and the world's fourth-largest, is confirmed to be in a recession.

German economy shrunk in the first quarter, putting it in recession after it logged negative growth in the fourth quarter of 2022.

Its GDP fell 0.3 per cent in the first quarter of 2022 (January-March), marking the country's slide into recession.

A 0.5 per cent contraction followed in the last three months of 2022.

A recession is typically characterised by two successive quarters (three-month periods) of contraction.

Europe's energy crisis, as a result of the Russia-Ukraine war, is the driving factor. It has led to dwindling energy supplies and rising inflation.

Germany last faced a recession when the Covid-19 pandemic made its way through Europe at the beginning of 2020.

While the euro dropped on Thursday (25 May), the dollar hit a two-month peak on the back of a demand for safe havens, with rising concerns around a US default.

Debt ceiling talks in the US will have to be resolved before 1 June, or else the Treasury will be unable to pay all its bills after that date.

Europe's economic downturn pushed the euro to multi-month lows against the dollar.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber