Author: PHILIP SINGER | EFE
If the experts’ forecasts are confirmed, the first European economy would be doomed to an imminent technical recession
The The German economy shrank more than expected in the last quarter of 2022 and fell by 0.4%, doubling the previous estimate at the end of January, as reported by the Federal Statistical Office (Destatis). The government office explains that the decline is justified by a drop in capital investment and personal consumption, while public spending contributed to an increase in global demand.
However, labor market grew by 1.1%, creating 492,000 jobs compared to the previous year. Thus, the number of employees amounted to 45.9 million people, which is a record number.
However, the number of working hours per capita fell by 1.5% year-on-year, which Destatis attributes to greater use of sick leave. Except, labor productivity also decreased by 0.8%.
If the forecasts of the economists he consulted with Bloombergwhich forecasts a new drop in GDP in the first quarter of 2023, Europe’s largest economy would inevitably enter a technical recession.
Source: La Vozde Galicia
I am Jason Root, author with 24 Instant News. I specialize in the Economy section, and have been writing for this sector for the past three years. My work focuses on the latest economic developments around the world and how these developments impact businesses and people’s lives. I also write about current trends in economics, business strategies and investments.
