World - Europe
Updated: May 08, 2023

German Industrial Production Declines, Leads To Recession Fears

By Quadri Adejumo
May 08, 2023
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Germany’s flag

Germany's industrial production declined more than expected in March, according to official data released on Monday.

The output reduced by 3.4% compared to the previous month, following a 2.1% increase in February.

The automotive industry was the major contributor to the decline, with motor vehicle manufacturing and automotive parts dropping by 6.5%, compared to a 6.9% increase in February.

The decline in industrial production has fueled fears of a recession, as it follows two months of strong growth in January and February.

The German economy is being battered by high energy prices following Russia's invasion of Ukraine.

Germany would dodge a downturn, but the latest negative data has fuelled concerns of a recession.

Commerzbank's chief economist, Ralph Solveen, has attributed the decline in industrial production to the global rate hikes, which are increasingly applying the brakes on the economy.