German central bank: 'We are likely in a recession'

12PUNTO FOREIGN NEWS

In its monthly report published on Monday, the Bundesbank stated that the German economy could shrink in the first quarter of 2024. The report included forecasts that Germany's industrial exports would remain weak, consumers would continue to be cautious in their spending, and domestic investments would slow down due to high interest rates.

The report also stated, "There is still no recovery in the German economy... Some stress factors will likely persist in the first quarter of 2024... Therefore, economic output will again show a slight decline." GDP had shown a 0.3% decline in the last quarter of 2023. If economic contraction occurs for two consecutive quarters, the country will technically enter a recession.

According to surveys conducted by the Bundesbank, both exporters and consumers in the country expect an economic contraction. In its report, the Bundesbank stated that the country is likely in a recession.

Last week, data from the central banks of the UK and Japan were released, showing that both countries' economies had shrunk for two consecutive quarters, and both had entered a recession. Following the UK and Japan, Germany has become another G7 country to enter a recession.

News Source: 12punto