the german economy entered a recession after it contracted by more than in initial estimates in the first quarter as household expenditure was squeezed by high inflation germanys gross domestic product contracted 03 compared with the previous threemonth period according to a second estimate released thursday by german statistics office destatis lower than the first estimate which showed the economy flatlined economists polled by the wall street journal had also a forecast of lack of growth the economy contracted by 04 in the fourth quarter of 2022 which means germany has now entered a recession typically meaning two quarters of negative growth the persistence of high price increases continued to be a burden on the german economy at the start of the year destatis said households purchased fewer new cars and spent less on food and beverages clothing and footwear in the first quarter of 2023 than in the previous quarter as wages didnt catch up with inflation destatis added the german economy is set for sluggish growth this year with the government in april predicting the economy to expand by 04 gdp in the first quarter contracted 05 compared with the same period a year earlier on a price and calendar adjusted basis destatis said again weaker than the forecast by economists polled by the wall street journal and the first estimate of 01