Germany recession 2023 | Europe’s biggest economy Germany is in recession
Pudhari Online: It has been confirmed that Germany, which is the largest economy in Europe and the fourth largest economy in the world, is in recession by 2023. As a result, the euro, the official currency of European Union nations, declined on Thursday. And due to increased demand for safe haven asset due to increased concern about US default, the dollar (US dollar index) has strengthened and has gone to a two-month high.
According to the quarterly data released by Germany’s statistics office, Germany’s GDP has decreased by 0.3 percent in the first quarter of the year. Germany’s GDP would have decreased by 0.5 percent in the fourth quarter of 2022, that is, between October and December. (Germany economy enters recession)
Concern has increased due to the latest rating of rating agency Fitch. Most of the US’s “AAA” debt rating has been placed in the Negative Watch category. The government and the opposing parties have not agreed to increase the debt limit in America, there are indications of possible consequences. (German news)
The US dollar benefited from the safe haven demand. In America, before a certain date, it is necessary for the government and the opposition parties to agree to increase the debt limit. In particular, the US Treasury has told the government that it does not have enough cash left to pay the bill.
Danske Bank’s senior analyst Stefan Melin has said that there has been an attempt to reduce risk during the week and this has helped the dollar. Meanwhile, the euro has gone down against the dollar due to the economic collapse in Europe. Signs of weakening of the European economy have been received from Germany. Where the economy has declined slightly in the first quarter. After the negative growth in the fourth quarter of the financial year 2022, the German economy has tilted towards recession. (Germany recession 2023)
“Aamhi ya week kahi vegvegala cross-Atlantic macro data pahila aahe. This shows the German economy slowing down,” said Danske Bank’s Melin.
The euro has fallen by about 0.2 percent. The euro has come down to 1.0715 ($1.0715) against the dollar. Eurochi is the lowest level in two months. The US dollar has strengthened this year due to the possibility of a rate cut by the Federal Reserve. (Germany recession 2023)
This is the covenant: