Germany leads euro-zone into recession

The downward revision to Germany’s first-quarter GDP data means its economy contracted by 0.8ppts during Q4 2022 and Q1 2023, leaving it much smaller than it was before the pandemic. What’s more, the outlook is increasingly bleak both for Germany and for the euro-zone as a whole. Next week we expect to learn that core inflation remained elevated at around 5½% in May.

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