Germany suffers winter recession on bleaker first quarter

Inflation and low consumer sentiment are among contributing factors

A Bundesbank report this week offered some optimism — suggesting the economy may grow “slightly” this quarter. However, other economists disagree. Picture: Getty

Germany suffered its first recession since the start of pandemic, extinguishing hopes that Europe’s top economy could escape such a fate amid the war in Ukraine.

First-quarter output shrank 0.3 per cent from the previous three months following a 0.5 per cent drop between October and December, the statistics office said Thursday. Its initial estimate, last month, was for stagnation.

“The reluctance of households to buy was apparent in a variety of areas,” the office ...