- German economy tipped into a technical recession in the first quarter.
- EUR/USD keeps losses near 1.0730 on the downbeat German GDP data.
The German economy entered a technical recession in the first quarter of 2023, according to final data from Germany's statistics office Destatis published Thursday.
The euro area’s economic powerhouse contracted by 0.3% in the first three months this year compared with the previous quarter. The preliminary figure showed no growth for Germany in the reported period. The market consensus was for a 0% clip.
On an annual basis, Germany’s Gross Domestic Product shrank 0.5%, down sharply from the 0.1% contraction initially estimated and missing the market expectation of a 0.1% decline by a wide margin.
Market reaction
The Euro is feeling the pull of gravity on the discouraging German data, with EUR/USD losing 0.14% on the day near monthly lows of 1.0728.
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