Recession… Recession… Recession! Since last year, recession is being discussed all over the world and one after the other many international agencies and analysts have been warning about recession. Now this fear has started coming true and has started engulfing big global economies. Means now the economic recession is not just an apprehension or speculation, but has become a reality. economy to Germany. Germany’s statistics office released data on the economy and economic growth on Thursday. According to statistics, Germany’s GDP declined by 0.3 per cent during the March 2023 quarter. Earlier, during the last quarter of last year i.e. October to December 2022, Germany’s GDP declined by 0.5 per cent.
What is an economic recession
Even though the rate of contraction of the economy during January to March 2023 is less as compared to the last quarter of the previous year, it is dangerous because in this way The German economy is now officially in recession. According to the prevailing definition of economics, if an economy contracts for two consecutive quarters, then the concerned economy is said to be in recession.
Persistent shocks to the economy
The whole world is facing many aftershocks one after the other for the last few years. First, the economic progress was derailed by the Corona epidemic. Then the US-China trade war, supply chain bottlenecks and chip shortages rattled the world. The effect of these problems had not diminished yet that the war between Ukraine and Russia started in Eastern Europe. The war in Ukraine and Russia has caused great damage to European economies, especially Germany.
The forecast had to be changed
Earlier, Germany’s Federal Agency had expressed the possibility of a very mild recession. And he expected the GDP growth rate to be zero during the March quarter. However, after assessing the circumstances that emerged later, it was found that the size of GDP actually declined during the March quarter.
This is how the economic recession came
Russia Due to the stoppage of fuel supply, inflation is at its peak in many countries and there is a shortage of food and drink. Germany has traditionally depended on Russian supplies for its fuel needs. Right now, due to the closure of this source, there is an outbreak of very high inflation in Germany. Due to this, the consumption of people has also been affected. Consumption in Germany declined by 1.2 per cent during the March quarter. These features, connected to each other, made the recession inevitable.
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