The economy ministry adds that a recovery will be primarily driven by the domestic economy, although early indicators do not signal any quick recovery as of yet. A positive takeaway is that German GDP is at least still 0.7% higher than what it was in 2019, the year before the Covid pandemic struck.
Looking at the details though, household consumption fell by 0.8% compared to the year before. And that points to inflation still being a major problem in Europe's largest economy. Besides that, weak domestic demand and a softer global economy also weighed on overall conditions. Here is the final breakdown:
