No more recession – but the euro zone is lagging behind Germany

2023-08-25 08:10:03

Dark clouds over Frankfurt

Compared to 2019, i.e. including the corona shock, German economic output could grow by just 1.7 percent by the end of 2024.

(Photo: dpa)

Berlin The German economy has not grown again – but at least it has not shrunk either. Gross domestic product (GDP) stagnated in the second quarter. The Federal Statistical Office announced this on Friday and thus confirmed its previous estimate.

German economic output has therefore not increased for three quarters in a row. In the last quarter of 2022, it fell by 0.4 percent. In the first quarter of 2023 there was a minus of 0.1 percent.

This means that Germany is no longer in a technical recession. Experts speak of this when there are at least two consecutive quarters of shrinking economic output.

Statistics office boss Ruth Brand said that the German economy had now stabilized. However, Germany will not get anywhere without growth and cannot make up for the losses of the past few years. In addition, gross value added, i.e. pure economic activity, fell by 0.5 percent in the second quarter.

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