As inflation hits the German economy, the country has been pushed into recession in the first three months of the year.
The economy saw a 0.5% contraction in the last three months of last year and has contracted by 0.3% between January and March. Higher prices of things such as food, clothing and furniture, have weighed on households spending. The impact of higher energy prices on businesses is also reflecting to make industrial orders weaker. The revised figures showed household spending was 1.2% lower than in the previous quarter, while government spending was 4.9% lower.
Following the scaling back of government grants for electric and hybrid cars, car sales also fell. Given Germany's heavy reliance on Russian energy, the recession was less severe than some had predicted. This was due to a mild winter and the reopening of China's economy helping ease the impact of higher energy prices. The largest economy in Europe was also affected when Russian gas supplies dried up following its invasion of Europe.
A country is deemed to be in recession when its economy shrinks for two consecutive three-month periods, or quarters. The IMF has predicted that Germany will be the weakest of the world's advanced economies, shrinking 0.1% this year.