By John Meyer, consultant in financial affairs, for Eurasia Business News, May 25, 2023
The GDP fell by 0.3% in Q1 2023 while the inflation rate, measured as the year-on-year change in the consumer price index, stood at +7.2% in April 2023, after +7.4% in March. Photo : Berlin, Germany, 2021.
The German gross domestic product (GDP) fell by 0.3% on the first quarter of 2023 (price, seasonally and calendar adjusted). The decrease was 0.2% on the same quarter a year earlier (price-adjusted).
The Federal Statistical Office (Destatis) reports that economic output at the beginning of the year was 0.3 percentage points lower than in the previous year. Quick news from April 28, 2023 reported. “After GDP had already slipped into negative territory at the end of 2022, the German economy recorded two negative quarters in a row,” says Ruth Brand, President of the Federal Statistical Office.
The continued high price increases continued to weigh on the German economy at the beginning of the year. This was particularly noticeable in private final consumption expenditure, which declined by 1.2023% in the 1st quarter of 2 in price, seasonally and calendar adjusted terms. Households’ reluctance to buy was evident in a number of areas: households spent less on food and beverages, clothing and footwear, and furnishings than in the previous quarter (price, seasonally and calendar adjusted).
In addition, fewer new passenger cars were purchased by private households, which is likely to be due, among other things, to the abolition of premiums for plug-in hybrids and the reduction in premiums for electric vehicles at the beginning of 2023. Government consumer spending also declined markedly by -4.9% compared with the previous quarter.
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The inflation rate in Germany, measured as the year-on-year change in the consumer price index (CPI), stood at +7.2% in April 2023. In March 2023, the inflation rate had been +7.4%.
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