The recession in Germany it is expected to end in the spring quarter, the Bundesbank said in its monthly report, adding that gross domestic product “will increase slightly” in the April-June period.
“Private consumption is expected to bottom out,” German central bank pundits wrote in the report. “Thanks to sharply rising wages, households’ real disposable incomes are stabilizing despite inflation remaining very high”.
In late 2022 and early 2023, Europe’s largest economy contracted for two quarters in a row, which economists term a “technical recession.”
The Bundesbank said the spring quarter’s recovery will be underpinned by US capacityGerman industry to weather the continued decline in demand thanks to lower energy prices, the easing of supply bottlenecks and a full order backlog.