Does this mean the German economy is now lower than it was before covid?
> German households spent a lot less in the first quarter, with final consumption expenditure falling 1.2% over that period, as consumers were reluctant to spend their cash on clothing, furnishing, cars and so on.
What a surprise. There is a constant inflation, but the wages mostly remain stagnant (or increased below the inflation rates).
Households did not spent less because they wanted to, they spent less because they had to.
Why?Energy prices and Inflation.
Finding a well paying job now is almost impossible. Cost of doing business is through the roof and thanks to the Green Party , electricity now costs more than ever, the highest price in Europe. Companies aren’t investing in new projects which just makes the situation worse.
Not good. To start Q2 the data on German manufacturing has further detoriated to levels only encountered during Covid and the financial crisis. Car-maker backlogs running thin, consumers starting to feel the pinch…
Services sector still booming, but that cannot go on forever. Rest of EU doing a bit better, which is expected.
>Data from the German statistics office on Thursday showed a downward revision to GDP from zero to -0.3% for the first three months of the year. Germany also recorded a 0.5% contraction in the last quarter of 2022.
Two back to back contractions in EU’s biggest economy, which isn’t good.
>The European Central Bank is expected to raise rates again at its next meeting on June 15. The central bank has lifted its rates by 375 basis points since July.
This could mean that ECB now gets more cautious with it’s rate increases because Germany has now started to feel the effects.
Come on Germany it’s time to see the light and rejoin the EU
I thought we’d all been told to memory-hole the idea that two consecutive GDP contractions was a recessionary indicator lol.
This is good for inflation. We need a recession to bring down the horrible thing that is inflation which is a wealth-crusher for young people.
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Does this mean the German economy is now lower than it was before covid?
> German households spent a lot less in the first quarter, with final consumption expenditure falling 1.2% over that period, as consumers were reluctant to spend their cash on clothing, furnishing, cars and so on.
What a surprise. There is a constant inflation, but the wages mostly remain stagnant (or increased below the inflation rates).
Households did not spent less because they wanted to, they spent less because they had to.
Why?Energy prices and Inflation.
Finding a well paying job now is almost impossible. Cost of doing business is through the roof and thanks to the Green Party , electricity now costs more than ever, the highest price in Europe. Companies aren’t investing in new projects which just makes the situation worse.
Not good. To start Q2 the data on German manufacturing has further detoriated to levels only encountered during Covid and the financial crisis. Car-maker backlogs running thin, consumers starting to feel the pinch…
Services sector still booming, but that cannot go on forever. Rest of EU doing a bit better, which is expected.
>Data from the German statistics office on Thursday showed a downward revision to GDP from zero to -0.3% for the first three months of the year. Germany also recorded a 0.5% contraction in the last quarter of 2022.
Two back to back contractions in EU’s biggest economy, which isn’t good.
>The European Central Bank is expected to raise rates again at its next meeting on June 15. The central bank has lifted its rates by 375 basis points since July.
This could mean that ECB now gets more cautious with it’s rate increases because Germany has now started to feel the effects.
Come on Germany it’s time to see the light and rejoin the EU
I thought we’d all been told to memory-hole the idea that two consecutive GDP contractions was a recessionary indicator lol.
This is good for inflation. We need a recession to bring down the horrible thing that is inflation which is a wealth-crusher for young people.