Recession Looms as German Economy Contracts

16 May 2003

The German economy is on the edge of recession after shrinking in the first quarter.

Hit by weak exports, Europe’s biggest economy dipped by 0.2% in the first three months of 2003, according to the Federal Statistics Office. Economists had been expecting growth of 0.1%.

A recession is usually defined as two consecutive quarters of contraction. In the fourth quarter of 2002, Germany registered flat growth.

However, the economy is up in year-on-year terms, rising 0.5% from Q1 2002.

Data sourced from: BBC Online Business News (UK); additional content by WARC staff