Germany falls into recession as inflation hits economy

[Social Media]

Persistent inflation has helped push Germany into recession in the first three months of the year, an upgrade to growth data shows.

Europe's largest economy was also badly affected when Russian gas supplies dried up after the invasion of Ukraine, analysts said.

The economy contracted by 0.3% between January and March, the statistics office said.

That followed a 0.5% contraction in the last three months of last year.

A country is deemed to be in recession when its economy shrinks for two consecutive three-month periods, or quarters.

"Under the weight of immense inflation, the German consumer has fallen to his knees, dragging the entire economy down with him," said Andreas Scheuerle, an analyst at DekaBank.

 

Germany's inflation rate stood at 7.2% in April, above the euro area's average but below the UK's 8.7%.

[candide]

Germany switched from 60% Russian gas dependence to zero. Few people thought they could make it, including Putin. Unfortunately there is a price to pay for that.

Hats off to Germany!

Edited May 26, 2023 by candide

[n00dle]

1 minute ago, candide said:

Hats down to Germany!

what does that even mean?

[youreavinalaff]

Must be Brexit's fault. ????????????????

[candide]

5 minutes ago, n00dle said:

what does that even mean?

Ooops! Now corrected, thanks!

[candide]

Meanwhile....

https://countryeconomy.com/ratings

[Tug]

Hopefully it’s short and mild 

[Pink Mist]

A post dragging the US into the OP has been removed 

[hotchilli]

Hard to believe that Germany a once powerhouse with a strong currency has declined so much.

I have a friend in Germany who says life is very hard there now and so much different from 20 years ago when the lifestyle was much better.

Politics and bad decisions has eroded the country.

 

[Venom]

Sadly, it seems the sanctions have hurt Germany far more than the intended target ????

[placeholder]

13 minutes ago, hotchilli said:

Hard to believe that Germany a once powerhouse with a strong currency has declined so much.

I have a friend in Germany who says life is very hard there now and so much different from 20 years ago when the lifestyle was much better.

Politics and bad decisions has eroded the country.

 

Germany is no longer an economic powerhouse? Really?

 

[newbee2022]

Though export is booming the inflation is eating up any recovering.

Hard stony way for Germany (but that is what US administration wants)

 

[Will B Good]

The last country on the planet I would worry about, in terms of recovering from financial set backs, is Germany.

[BusyB]

5 hours ago, placeholder said:

Germany is no longer an economic powerhouse? Really?

 

Thanks. You saved me the bother. What a load of utter cobblers. And the 'recession' is at a very high level of production and prosperity.

We can handle it.

And I'd rather be poor (yes we have those too) in Germany than anywhere else, especially the UK or the US.

[Mac Mickmanus]

 

Analysts worry the German economy could become "the black sheep of Europe".

 

Germany fell into recession in the first quarter of 2023, putting Europe's largest economy out of step with the rest of the continent.

 

https://www.euronews.com/2023/05/26/why-has-germany-gone-into-recession#:~:text=The downturn is due in,April%2C despite a gradual decline.

[JustAnotherHun]

German politics is when the flux compensator hasn't been invented yet, but you're accelerating your DeLorean to 200 km/h towards the wall

[248900_1469958220]

4 hours ago, Will B Good said:

The last country on the planet I would worry about, in terms of recovering from financial set backs, is Germany.

True, they can always invade Poland. 

[JustAnotherHun]

1 minute ago, 248900_1469958220 said:

True, they can always invade Poland. 

They even could not invade Liechtenstein.

Edited May 29, 2023 by JustAnotherHun

[candide]

11 hours ago, candide said:

Meanwhile....

https://countryeconomy.com/ratings

 

4 hours ago, Will B Good said:

The last country on the planet I would worry about, in terms of recovering from financial set backs, is Germany.

So do credit rating companies (my post).

[jollyhangmon]

On 5/26/2023 at 7:09 AM, Social Media said:

"Under the weight of immense inflation, the German consumer has fallen to his knees, dragging the entire economy down with him," said Andreas Scheuerle, an analyst at DekaBank.

 

... 555, sure, sure, if you're reading too much 3rd rate fantasy.

 

Plenty of coin in DE, but the German consumer has rather risen the middle finger, in stereo no less, to gently point out to the obvious plethora of greedy profiteers where to shove their now way overpriced crap.

 

[James105]

On 5/26/2023 at 7:09 AM, Social Media said:

Europe's largest economy was also badly affected when Russian gas supplies dried up after the invasion of Ukraine, analysts said.

Literally no-one could have predicted this was going to happen!   

 

Oh wait, somebody did:

 

 

[JonnyF]

Oh dear. Germany, the powerhouse economy of the EU in recession?

 

Well they say the fish rots from the head. And the corrupt EU is certainly rotten to the core.

 

it seems Britain leaving is really taking its toll on the EU. As many predicted.

Edited May 29, 2023 by JonnyF

[candide]

8 minutes ago, James105 said:

Literally no-one could have predicted this was going to happen!   

 

Oh wait, somebody did:

 

 

He did. As Obama and Biden did before him.

 

Obama tells EU to do more to cut reliance on Russian gas (2014)

https://www.reuters.com/article/us-usa-eu-summit-idUSBREA2P0W220140326

 

Biden Calls Nord Stream 2 Pipeline ‘Bad Deal For Europe’ (2016)

https://www.rferl.org/a/biden-nord-stream-2-pipeline-bad-deal-for-europe/27945891.html

[candide]

23 minutes ago, JonnyF said:

Oh dear. Germany, the powerhouse economy of the EU in recession?

 

Well they say the fish rots from the head. And the corrupt EU is certainly rotten to the core.

 

it seems Britain leaving is really taking its toll on the EU. As many predicted.

Why do you feel you need to compare UK only with the current worst case?

 

UK is only second worst after Germany in G7. 

 

UK is also rated AA- while Germany is rated AAA.

Edited May 29, 2023 by candide

[BusyB]

14 minutes ago, candide said:

He did. As Obama and Biden did before him.

 

Obama tells EU to do more to cut reliance on Russian gas (2014)

https://www.reuters.com/article/us-usa-eu-summit-idUSBREA2P0W220140326

 

Biden Calls Nord Stream 2 Pipeline ‘Bad Deal For Europe’ (2016)

https://www.rferl.org/a/biden-nord-stream-2-pipeline-bad-deal-for-europe/27945891.html

And when it became necessary we all pulled together and we did.

 

And we won't go back either.

[GinBoy2]

On 5/25/2023 at 11:27 PM, candide said:

Germany switched from 60% Russian gas dependence to zero. Few people thought they could make it, including Putin. Unfortunately there is a price to pay for that.

Hats off to Germany!

I'm must admit I was shocked and amazed how fast they pivoted to LNG, building LNG terminals in 100 days I seem to recall reading.

 

I'm sure Putin never dreamt that would happen

[JonnyF]

On 5/26/2023 at 12:27 PM, candide said:

Germany switched from 60% Russian gas dependence to zero. Few people thought they could make it, including Putin. Unfortunately there is a price to pay for that.

Hats off to Germany!

I’m sure those German pensioners unable to heat their homes, going to bed cold every night are thrilled that German politicians have made themselves feel better with this virtue signaling after decades of poor resource planning and over reliance on Russian gas.

 

Especially after their representatives famously laughed at the warnings of over reliance on Russian oil, delivered by “the orange nemesis”.

 

ignored warnings about exports to Britain suffering post Brexit.

 

The Germans are reaping what they sowed in terms of this recession.

 

I have personally made 2 big purchasing decisions where I bought Japanese brands instead of German brands (one car one motorcycle) post Brexit due to their behavior during Brexit negotiations.

 

Disrespect British consumers at your peril. Disrespect the British people at your peril.

[JustAnotherHun]

One third of the LNG imported to the EU comes from - guess who? - yes, Russia.

Though Germany does not import directly from Russia, the russian LNG comes from mainly Netherlands and France.

 

The difference between russian gas from pipelines and russian gas from LNG terminals is that LNG is by far more expensive.

 

[Chicksaw]

Wuss of a country, Germany. Their, cough, cough, ally blows up their pipeline and they pretend to see no evil and hear no evil.

 

Recession? Of course, if you replace billions of cubic meters of cheap gas with billions of barrels of LNG from the same country, except it's rerouted and rebranded in India, you gotta  pay. Follow the numpty Baerbock off a cliff.

[JustAnotherHun]

18 minutes ago, JonnyF said:

I’m sure those German pensioners unable to heat their homes, going to bed cold every night...

Ahem, this is not the current or last winter's reality in Germany.