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.
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