According to experts, Germany's recession is seen as the first falling domino within the EU, given that Germany has long been the flagship and a powerhouse of Europe.
Germany entered a technical recession in the first quarter of 2023, according to recent figures from the Federal Statistical Office. What's behind the new trend and what does the future have in store for the German economy?
Revised official data has indicated that Germany's economy is in worse shape than previously estimated: it has contracted twice, in two consecutive quarters, meaning that it has been dragged into a recession. As per international economic observers, the unfolding economic slowdown has largely been caused by the disruption of Germany's energy ties to Russia, which exacerbated the already swirling crisis in the country and contributed to gradual de-industrialization.
"Long term, reliable, low cost and abundant energy supplies from Russia have been pivotal to German industrial sector development...