Germany's Economy Shrinks for First Time Since Pandemic Began, Hit by Inflation and Weak Demand
• Germany's economy shrank 0.3% in 2023, the first contraction since the Covid-19 pandemic began • The decline was due to high inflation, rising interest rates, weaker domestic and foreign demand • The manufacturing sector was hit hard, with output falling 2% overall • Other sectors like retail, trade, and government spending also contracted • Employment was a bright spot, growing a record 0.7% or 333,000 people to 45.9 million workers