Germany: Final Gross Domestic Product is revised down to -0.3% quarter-on-quarter in the first quarter

  • The German economy enters a technical recession in the first quarter of 2023.
  • EUR/USD holds losses near 1.0730 after downbeat German GDP data.

The German economy entered a technical recession in the first quarter of 2023according to the final data published by the German agency Destatis have confirmed on Thursday.

The economic power of the euro zone contracted -0.3% in the first quarter of this year. Preliminary data showed no growth for Germany in the reporting period. The market consensus was 0%.

Germany’s annualized Gross Domestic Product contracted -0.5%, versus -0.1% in the first estimateand widely exceeded market expectations, which expected -0.1%.

Market reaction

The common currency is feeling the pull of gravity following disappointing German data, with EUR/USD shedding 0.14% on the day, nearing monthly lows of 1.0728.

Source: Fx Street

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