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Germany plunges into recession

Germany plunges into recession

Continued inflation has pushed Germany into recession for the first three months of this year.

Europe's biggest economy was hit when Russian gas supplies dried up after the invasion of Ukraine, analysts said.

The economy shrank by 0.3% between January and March, the statistics office said.

This followed a contraction of 0.5% in the last three months of last year.

"Under the weight of extraordinary inflation, the German consumer has fallen to its knees, dragging the entire economy down with it," said Andreas Scheuerle, an analyst at DekaBank.

High prices have weighed on German families, causing them to cut back on food, clothing and furniture. There was also a decrease in sales for industry, reflecting the impact of high energy prices on businesses.

The revised figures showed that household spending was 1.2% lower than in the previous quarter.