A pandemic and war weigh on the German economy, narrowly avoiding a recession
Despite Ukraine's war and the lingering effects of pandemic restrictions, the German economy avoided a recession in the first quarter. However, it managed to grow at a pace that was only 0.2 percent.
A statement from Georg Thiel, president of the Federal Statistical Office, claimed that the tensions in Ukraine and the ongoing COVID-19 pandemic have aggravated existing distortions, such as interruptions in supply chains and rising prices.
The German economy rose by a very slight amount in 2022 despite challenging global economic conditions, he noted.
The German Federal Statistics Office released data on May 25 showing that it has grown 0.2 percent quarter-over-quarter in Q1 of 2022, in line with analysts' estimates.
Recent German industrial production data showed output falling 3.9 percent in March. The sharp drop, nearly four times as high as analysts expected, prompted some economists to predict that Europe’s biggest economy was due for a nosedive into recession.
25 May 2022