German economy contracts in Q1

Germany economy posts 2 consecutive declines, official figures show

By Gokhan Ergocun

DOHA, Qatar (AA) - The German economy has contracted by 0.2% year-on-year in the first quarter of 2023, official figures showed on Thursday.

According to the federal statistical office Destatis, the country's gross domestic product has also declined by 0.3% on a quarterly basis.

With this figure, the country's economy posted two consecutive declines in the last quarter of 2022 and the first quarter of 2023.

Destatis said households spent less on food, beverages, clothing, and furnishing during this January-March period.

"Furthermore, households purchased fewer new cars, which is likely attributable, in part, to the discontinuation of grants for plug-in hybrids and the reduction of grants for electric vehicles at the start of 2023," it added.

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